The ongoing concerns sparked by US President Donald Trump’s extensive global tariffs have led analysts to increasingly believe that Bitcoin is positioned to potentially rival the US dollar in the coming years.
“There’s a higher probability that Bitcoin will outlast the dollar in our lifetime after today,” stated Jeff Parks, head of alpha strategies at Bitwise Invest, in an April 9 post on X.
Crypto executive claims investors have no choice but Bitcoin
“For the first time, this thought resonated with me not as a theory but as a stark reality,” Parks added.
Bitwise CEO Hunter Horsley echoed this sentiment, emphasizing that as trust in the US dollar diminishes and foreign currencies appear “even weaker,” investors find their options dwindling.
He pointed out that gold, often considered a safe haven during turbulent times, comes with its own challenges regarding transportation and storage, suggesting that Bitcoin could be the last viable alternative. “Ultimately, you end up purchasing Bitcoin,” Horsley remarked.
Source: Michael Saylor
The US Dollar Index — which measures the dollar’s strength against a group of major currencies — is currently at 102.193, a decrease of 5.84% since January 1, according to TradingView. However, a recent report from the Wall Street Journal revealed that Wall Street analysts misjudged the tariffs’ impact on the dollar’s strength.
On April 2, Trump enacted an executive order instituting a 10% baseline tariff on all imports from all nations, effective from April 5. More severe reciprocal tariffs on trading partners with whom the US has substantial trade deficits were activated on April 9.
The ambiguity surrounding these tariffs and anxiety about a potential broader recession have significantly influenced the decline across traditional and crypto markets.
Bitcoin (BTC) is priced at $76,301, representing an 18.37% drop since January 1, based on CoinMarketCap data.
Bitcoin author Saifedean Ammous commented in an April 8 post on X that America’s challenges are not confined to a single country’s trade deficit but stem from global aggregate deficits resulting from the “fiat money printer.”
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“A growing number of Americans can sustain themselves off the money printer as long as the rest of the world continues to utilize the dollar,” Ammous emphasized.
He advocated for a halt on the production of “fake money” and a transition to a solid store of value, citing Bitcoin or gold as worthy examples.
“Another way to rectify this would be for the world to adopt a hard money standard and abandon America’s worthless currency, providing Trump with the trade surpluses that he believes he desires.”
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This article is not intended as investment advice or recommendations. Every investment and trading action carries risk, and readers should perform their due diligence before making any decisions.
