Bitcoin’s appeal as a haven of safety increases during times of trade conflict uncertainty

Bitcoin is becoming a popular safe-haven investment, second only to gold. This recognition comes from its accessibility and liquidity advantages over precious metals.

The financial markets are shook since US President Donald Trump’s April 2nd announcement. reciprocal import tariffs Announcement leading to record selling for traditional stock markets, and Bitcoin.BTCCorrections below $75,000

Bitcoin is attracting renewed interest, according to analysts. While gold still remains the most popular investment option during periods of geopolitical turmoil, its digital nature and 24-hour liquidity help it gain new investors.

“You want to store value in something other than U.S. assets. But you don’t want to own other nations’ currencies/debt/assets because they’re even weaker and you expect they’ll debase it,” said Hunter Horsley is the CEO of Bitwise Crypto Asset Manager, and he posted a blog on April 9, 2019 at X.

“You look around, and you see it: an asset that can’t be debased, is controlled by no country, and that you can take into your possession immediately. You wind up buying Bitcoin,” Horsely Said

Aurelie BARTHER, principal researcher at Nansen’s crypto intelligence platform, said to Cointelegraph:

“Bitcoin is promising, but it’s still quite volatile, it could get there gradually. The PBOC has been shedding U.S. Treasury holdings and increasing gold reserves for years. Therefore, I expect this trend to accelerate regardless of the crypto narrative.”

Related: 4th gen crypto needs collaborative tokenomics against tech giants — Hoskinson

China’s Finance Ministry April 9, announced As a response to Trump’s policies, new tariffs up to 84 percent on US imports will be implemented starting April 10. Analysts think a solution could decrease uncertainty and reignite interest in risky assets such as crypto.

China’s retaliatory tariffs were a response by China to Trump’s tariffs plan. Trump imposed tariffs of 34% on Chinese goods, starting from April 9, 2018.

Some analysts believe that Trump’s international tariff negotiations are merely a ploy to increase his global trade. “posturing” for the US Achieving an agreement with China could help end uncertainty about global trade, and risky assets such as cryptocurrency may recover.

Related: Bitcoin ETFs lose $326M amid ‘evolving’ dynamic with TradFi markets

China and Russia use Bitcoin as a payment method

Some countries are taking the first steps to use cryptoassets for global settlement.

“China and Russia have reportedly begun settling some energy transactions in Bitcoin and other digital assets,” Matthew Sigel of VanEck’s digital asset research department wrote an April 8th article. note. “These are early signs that Bitcoin is evolving from a speculative asset into a functional monetary tool.”

Sigel also cited Bolivia’s plans for importing electricity through crypto, and French utility EDF exploring the use of surplus power in mining Bitcoin.

“These developments reflect a growing interest in neutral settlement rails, especially among economies looking to bypass the U.S. dollar,” “He said”

Prior reports have also shown that Russia is using Bitcoin Stablecoins for the international oil market to avoid global sanctions

Bitcoins are evolving “volatility profile” BTC “gradually maturing from a risky asset to a safe-have asset,” wrote André Dragosch, macro analyst and European head of research at Bitwise.

When you are looking for a way to improve your life, tariff uncertainty will If positive changes occur, they could lead to renewed investments in crypto markets.

“We’ll start to see the rotation toward the crypto markets in the coming period where there’s more calm and peace in the markets where investors start to buy the dip and understand that some things have been undervalued,” Michaël van de Poppe, founder of MN Consultancy, told Cointelegraph.

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