Bitcoin and Gold as Safe Havens in the US Trade War

Experts from the investment company Grayscale believe that the escalation of the trade war initiated by US President Donald Trump creates favorable conditions for the growth of Bitcoin and gold, despite the negative consequences for traditional fiat assets. In their opinion, the growing tension between the US and a number of other countries may lead to a weakening of the dollar’s position as a global reserve currency. This opens up space for strengthening alternative forms of savings, including the first cryptocurrency and precious metals, experts say.

Grayscale analysts note that the history of financial crises shows that during periods of dollar devaluation and accelerating inflation, investors actively seek capital protection in assets that are not tied to fiat systems. Bitcoin, with its limited emission and growing popularity, is capable of playing the role of just such a hedging instrument. In addition, experts emphasize that macroeconomic instability traditionally pushes for increased interest in decentralized assets that are independent of central bank policies and international agreements.

Strengthening infrastructure and institutional interest support bitcoin

Grayscale is confident that efforts to develop cryptocurrency infrastructure, as well as possible changes in the regulation of digital assets in the United States, can further accelerate the inflow of investments into bitcoin in the coming months. The growth of institutional participants, the introduction of new financial products and increased trust in blockchain solutions create the preconditions for the long-term strengthening of bitcoin as a reliable means of storing value.

A similar point of view was previously voiced by Jeffrey Kendrick, head of the digital asset research department at Standard Chartered Bank. According to him, bitcoin is becoming an increasingly attractive instrument for protecting against geopolitical risks caused by the escalation of trade conflicts between the United States and the rest of the world. Thus, against the backdrop of uncertainty in the global economy, cryptocurrencies and gold continue to strengthen their positions as alternative assets for preserving and increasing capital.