Trade Wars Enhance Bitcoin’s Appeal, Say Experts

Bitcoin acts as a check on unscrupulous governments, with a strong correlation between economic instability and cryptocurrency growth. So stated James Butterfill, head of research at CoinShares, as reported by The Block.

The expert emphasized that digital gold possesses unique network effects absent in other currencies.

“The dollar is losing its status as a global reserve asset. Bitcoin becomes attractive if you introduce more rules like the IEEPA, which potentially undermines the national currency,” he explained.

The publication noted that the US president’s “tariff policy” will hasten the shift to solid, non-state instruments like the first cryptocurrency, as investors seek alternatives amid rising trade tensions.

“Asset freezes are not confined within national borders. They can be cross-border in nature. Donald Trump holds the power of life and death over all countries. Arbitrary use of such laws to legitimize unconventional means will only accelerate the global shift away from the US and undermine long-term trust in the dollar,” explained Jiang Jingjie, chairman of Muse Labs.

Cryptoderivatives trader Gordon Grant agreed that US sanctions pose a risk of potential USD devaluation relative to “hard” assets.

“The dollar still behaves as a risk haven, but at some point, in the medium to long term, will people want to buy it, given the risks revealed by the adoption of IEEPA?” he pondered.

New “Surprises” from Trump

Bitfinex pointed to “new macroeconomic news” as a driver for bitcoin in the near future.

In their view, amid the turbulence caused by Trump’s actions in foreign trade, the asset’s resilience demonstrates the relative strength of cryptocurrency.

Experts did not rule out that quotes might “wobble” due to “another frightening event,” but subsequently, the price will rise significantly. This will be aided by the US government’s disclosure of plans regarding bitcoin, they added.

“Since mid-November, the asset has traded within a 15% range. Two distinct peaks have formed near $108,000. Such sideways movements usually resolve in either direction within 80-90 days. In other words, in the coming weeks, bitcoin may experience a decisive price movement,” the specialists concluded.

Analyst Thomas Farrer predicted a price surge of $50,000 in a minute when US authorities confirm the creation of a reserve in the first cryptocurrency.

The day the US government announces they are buying bitcoin, the price will go up $50,000 in a single 1 minute candle. Do not get caught short.

— Thomas | heyapollo.com (@thomas_fahrer) February 5, 2025

“Do not get caught short,” he warned.

In February, MN Trading founder Michaël van de Poppe predicted high volatility in the first cryptocurrency market and pointed to a possible ATH within a month.

Earlier, Standard Chartered announced expectations of bitcoin rising to $112,000-130,000 in the short term.