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

On April 2nd, as per CoinDesk, the prices of cryptocurrencies have been increasingly affected by traditional assets (such as stocks and bonds), which have been impacted by macroeconomic uncertainties. 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 stayed away from crypto assets regarded as relatively high-risk. Marc Ostwald, the Chief Economist and Global Strategist at ADM Investor Services International, stated: "All of this is related to the market's 'risk appetite,' which is deteriorating. Currently, it is 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 thinks that tariffs will weaken the dominance of the US dollar and create space for competitors including Bitcoin. Although prices have dropped in the short term, the first few months of the Trump administration have further strengthened Bitcoin's long-term prospects as a global monetary asset. Despite the current market's pessimism towards prices, Pandl still believes that Bitcoin will reach a new all-time high this year.