Matthew Sigel, head of digital assets research at VanEck, highlighted the growing use of Bitcoin by countries like China and Russia for energy transactions, reflecting a shift towards digital assets amid rising global trade tensions.

In response, China has announced tariffs of up to 84% on U.S. goods starting April 10, escalating the ongoing trade war.

The recent performance of Bitcoin, which has shown stability amid falling equities, reflects its growing demand as a hedge against traditional market volatility.

A recent report indicates that the use of digital assets in global trade is on the rise, particularly among nations seeking alternatives to U.S. financial dominance.

Trump's tariff package, targeting imports from China and the EU, has reignited global trade tensions and raised concerns about the stability of international financial systems.

As the U.S. dollar weakens, having dropped approximately 6.1% since January 2025, investors are increasingly looking to cryptocurrencies and precious metals as viable alternatives.

The People's Bank of China is increasing its gold reserves while reducing U.S. Treasury holdings, a trend likely to continue amid ongoing economic uncertainties.

Hunter Horsley, CEO of Bitwise, noted that investors are increasingly seeking assets that cannot be debased, positioning Bitcoin as a unique solution with easy access and control.

Analysts assert that Bitcoin is appealing in this environment as it is not subject to government manipulation and serves as a hedge against currency devaluation.

China has instructed its state banks to reduce dollar reserves, while Russia aims to conduct trade outside of U.S. financial systems, further emphasizing the move away from traditional fiat currencies.

This trend follows the imposition of tariffs by the Trump administration on April 2, 2025, which has intensified global trade conflicts and prompted countries to seek alternatives to the U.S. dollar.

As of April 9, 2025, Bitcoin is trading at $77,404.85, down from recent highs of approximately $85,000, highlighting its fluctuating nature in the current economic climate.