- VanEck documents the growing use of Bitcoin as a worldwide currency, particularly in periods of tariff friction.
- Bitcoin shows its durability by outperforming the Nasdaq despite market turbulence.
- Bitcoin’s growing practical use is seen in its use in international payments.
The position of Bitcoin in transitioning from a speculative asset to an effective monetary tool is viewed by VanEck. A recent report by a financial firm shows the growing use of Bitcoin in economies seeking to avoid the U.S. dollar, especially with the tariff strategies of President Trump, with its adoption into global trade and energy transactions showing a shift from speculation towards real usage.
Bitcoin’s Performance Amid Global Trade Tensions
In a Bitcoin Magazine report, the new tariffs on China and the EU have sparked fear of monetary fragmentation. While Bitcoin’s price did decline slightly from $85,000 to $81,000 on the announcement, Bitcoin still trounced the Nasdaq on all major timeframes, including one week, one month, and year-to-date. This data indicates Bitcoin’s strength in being able to maintain its ground amidst turbulent market situations.
Bitcoin’s performance during periods of slow growth suggests that policy adjustments can be the key driver of its future trajectory. If GDP growth slows down, yet does not stimulate inflation, this could encourage the Federal Reserve to cut rates, hence setting good circumstances for Bitcoin. Bitcoin traditionally has done well in these liquidity conditions, so this will be one crucial development to follow.
Bitcoin’s Emerging Role in Global Settlements
Countries like China, Russia, and Bolivia are going to integrate Bitcoin into their trade and energy infrastructure. These efforts are a transition towards Bitcoin as a medium of cross-border transfer independent of the traditional banking industry. In particular, French state-owned electricity group EDF is exploring Bitcoin mining using surplus power, further entrenching the growing real-world usage of Bitcoin.
As Bitcoin becomes more utilized in third-party settlement systems outside of the U.S.-dominated financial system, its utility as a global monetary instrument increases even more. This could be accelerated as more nations seek alternatives to the dollar, with Bitcoin being a leading asset in this de-dollarization.
