Analysis: Tariffs Could Weaken Dollar Dominance, Potentially Benefiting Bitcoin in the Long Term

BlockBeats News, April 2nd, according to CoinDesk, cryptocurrency prices have been increasingly influenced by traditional assets (such as stocks and bonds), which have been impacted by macroeconomic uncertainty. Tariffs — additional fees imposed by the United States on imported goods from other countries — have made Wall Street worried about a global economic recession. Cryptocurrency investors have steered clear of crypto assets seen as relatively high risk. Marc Ostwald, Chief Economist and Global Strategist at ADM Investor Services International, stated: "All of this relates to the market's 'risk appetite,' which is deteriorating, currently causing a divergence between crypto assets and gold, with gold still being the preferred 'safe haven'."

Furthermore, former Goldman Sachs macroeconomist Pandl believes that tariffs will increase the demand for non-dollar currencies. He also believes that tariffs will weaken the dominance of the US dollar, creating space for competitors including Bitcoin. While prices have fallen in the short term, the first few months of the Trump administration have further solidified Bitcoin's long-term prospects as a global monetary asset. Despite the current market's pessimism towards prices, Pandl still believes that Bitcoin will hit a new all-time high this year.