Analysts at an influential global investment company say that the economic revenge from China and Europe (EU) for new US tariffs may end up boosting digital assets.
Matthew Sigel, the VanEck head of research for digital assets says in a thread posted on social media that the latest tariffs imposed by President Donald Trump will increase the use of Bitcoin as a settlement tool for energy trading.
As we had predicted, China and Russia have recently been revealed as using Bitcoin to settle some energy transaction. Bolivia announced in March plans to import energy via crypto. In Europe, the French utility EDF will use surplus electricity currently exported to Germany to mine Bitcoin.
The latest developments show how digital assets have evolved from being speculative tools to instruments for energy trading and monetary realignment. The latest tariffs may not only be an economic story, but they could also accelerate Bitcoin’s position in the multi-polar emerging order .”
Sigel continues to state that to gauge the cryptocurrency markets, traders need to keep a close eye on policies from the US Federal Reserve and China.
He notes that the US Dollar and BTC ETF inflows are also important. Sigel says that if China or the EU retaliated against Trump’s tariffs by moving away from US dollars, this could increase the use of digital assets.
Investors are advised to keep an eye on the Fed’s policy. Historically, dovish changes in expectations of interest rates and increased liquidity have been positive for Bitcoin. U.S. Dollar Index DXY is a key indicator – signs of weakness in the dollar may help support Bitcoin as a hedge narrative.
Bitcoin ETF flow and on-chain activities are also important: despite the volatility, U.S. listed spot Bitcoin ETFs have a net-positive year-to date of $600,000,000, with new inflows in late March.
Finally, a retaliatory step from China or Europe – particularly one that does not use dollar-based system – would accelerate the case for cryptocurrency.”
Trump issued an executive order last week that placed sweeping tariffs or reciprocal duties on a list of countries, with the goal to protect domestic manufacturing. This announcement caused a dramatic drop in the prices of digital assets and stocks.
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