Grey release: Tariffs and trade tensions could have a positive impact on Bitcoin's mid-term adoption

Asset manager Grey Release Investments (Grayscale) said in a research note published Wednesday that tariffs and trade tensions could ultimately have a positive impact on Bitcoin (BTC) adoption in the medium term. The report points out that the imposition of tariffs can lead to economic stagflation, that is, stagnant economic growth coexists with inflation, which is bad for traditional assets but good for scarce commodities such as gold; trade tensions may put pressure on demand for dollar reserves, leaving room for competing assets including other fiat currencies, gold and bitcoin; historical precedent suggests that a weak dollar and above-average inflation may persist, and bitcoin may benefit from such a macro context; "Rapid improvement in market structure supported by changes in U.S. government policy" may help expand bitcoin's investor base.