Escalating trade tensions and tariffs may drive Bitcoin adoption in the medium term, according to a new report from global asset management firm Grayscale. Grayscale argues that such economic conditions could lead to stagflation, which tends to benefit scarce assets like Bitcoin (BTC) and gold. These challenges may also weaken the U.S. dollar’s dominance as the world’s primary reserve currency, paving the way for alternative assets like Bitcoin. The report notes that from President Donald Trump's tariff 'Liberation Day' (April 2) to April 8, the S&P 500 dropped by about 12%. Given Bitcoin's typical volatility—about three times that of the S&P 500—this would suggest a potential 36% decline for Bitcoin if it moved in sync with the equity market. However, Bitcoin only experienced a 10% drop during this period. To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io
