#TrumpTariffs Trump’s tariffs and the trade war had complex, multi-layered effects. While damaging to global trade efficiency, they indirectly contributed to Bitcoin's appeal as a hedge against economic and geopolitical instability. The situation highlighted Bitcoin’s potential role in a world of increasing de-globalization and financial fragmentation.
Impact on Bitcoin (BTC)
1. Hedge Against Geopolitical Uncertainty:
The trade war increased global economic uncertainty, driving interest in non-sovereign assets like Bitcoin. Investors looked for alternatives to traditional fiat currencies and assets tied to geopolitical risks.
2. Capital Flight and Currency Hedging:
Some analysts observed spikes in $BTC prices during intense trade tensions. In countries like China, BTC was used (despite restrictions) as a vehicle to bypass capital controls and hedge against yuan depreciation.
3. Weakening of Fiat Currencies:
Tariffs and uncertainty weakened both the yuan and, occasionally, the U.S. dollar. This bolstered BTC's narrative as a decentralized store of value