While the global tariff war is escalating quickly with Trump’s latest 104% tariff move on China is shaking the global markets, market analysts are expecting that it all will strengthen Bitcoin’s role in the finance market and it will eventually come out as a winner.
In his recent interview with Bloomberg, Bitwise’s Chief Investment Officer (CIO), Matt Hougan says that while countries are trying to save their fiat currencies by implying tariffs, it will all help Bitcoin to win the war.
“There’s a lot of uncertainty in the global markets right now, especially with the U.S.-China trade tensions escalating and these new tariffs coming into play,” said Hougan, adding “ I think we’re seeing a real battle over currency dominance, with nations trying to protect their fiat systems. But when you look at the bigger picture, I think the answer to who wins in this currency war is Bitcoin.”
When asked why he thinks so, Hougan replies that Bitcoin is not tied to any government or central bank and it is uniquely positioned as a decentralized and borderless asset.
“In times of currency devaluation or trade conflicts, like what we’re seeing now with the U.S. imposing 104% tariffs on China, investors start looking for a hedge,” he emphasized. According to him, Bitcoin’s scarcity, fixed supply, and growing adoption make it a strong contender as a hedge against all these uncertainties.
“We’ve seen this historically: every time there’s a major drawdown or economic uncertainty, Bitcoin tends to rebound stronger. In fact, I’d say BTC is set up to rally significantly in the coming months as these tensions play out,” Hougan said.
Bitwise is one of the 11 issuers of spot Bitcoin ETFs with it having $2.97 billion of net assets in its respective ETF (BITB) – as per Sosovalue data.
While Bitcoin price is currently down nearly 30% from it’s all-time high, it is up over 300% in the past 2 years. It has always come back stronger after losing significant market cap in six or seven months of downtrading.
“With institutional adoption growing, our own research at Bitwise shows more ETFs and funds entering the space, I think the stage is set for a significant rally,” Hougan said, suggesting that Bitcoin price could soar to new highs once the tariff war cools down.
Also Read: Bitcoin drops 5% as US imposes 104% tariff on China
