Grayscale Research has suggested that ongoing inflationary pressures and rising global trade tensions could support scarce commodities like Bitcoin (BTC) and gold. Drawing parallels with gold’s performance during the stagflation era of the 1970s, the firm argues that Bitcoin is now positioned as a modern alternative store of value due to its evolving market structure and policy support in the United States.
Despite the recent drop in Bitcoin’s price following the White House’s announcement of new bilateral tariffs, Grayscale believes these developments could accelerate Bitcoin adoption in the medium term.
“High tariffs often contribute to stagflation, which typically reduces returns on traditional assets but benefits rare commodities like gold and now potentially Bitcoin,” Grayscale said in its latest research brief. “While Bitcoin was not available during previous periods of stagflation, it is increasingly viewed as a scarce digital commodity.”
The firm also noted that trade disruptions could weaken global demand for the U.S. dollar, opening up more space for other fiat currencies, gold and alternative assets like Bitcoin. “As reserve currency dominance becomes more difficult, Bitcoin could see increased demand from investors seeking alternatives to dollar-denominated assets,” the report said.
While acknowledging the near-term uncertainty, Grayscale urged long-term investors to prepare for a prolonged period of above-target inflation and a weakening dollar. “Periods of significant friction in U.S. trade have historically resulted in structural dollar weakness, and this trend could again benefit hard assets.”
*This is not investment advice.
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