Bitcoin's Resilience Amid Tariffs Drives Institutional Interest

Global trade tensions, exacerbated by recent tariff announcements, have sparked renewed interest in Bitcoin as a strategic financial asset. Matthew Sigel, the head of digital assets at VanEck, highlighted Bitcoin's resilience in the face of geopolitical trade disputes, noting its growing appeal as a neutral asset during times of economic uncertainty.

Following the announcement of new reciprocal tariffs by US President Donald Trump on 180 countries, Bitcoin initially dipped to the $81,000 range due to broader risk-off sentiment. However, it quickly stabilized and outperformed equities in the subsequent days. Sigel attributed this resilience to Bitcoin's status as a neutral asset, which becomes increasingly attractive during periods of economic instability. He suggested that if tariffs lead to slower economic growth without triggering a new wave of inflation, the Federal Reserve may have the scope to cut interest rates. This, in turn, could reintroduce liquidity conditions that have historically favored Bitcoin.

Sigel also pointed out the growing appeal of neutral financial infrastructure as traditional systems become more politicized or "weaponized." He cited recent developments where several nations have turned to digital assets for cross-border settlement, marking a significant shift from traditional dollar-based systems. For instance, intelligence reports revealed that China and Russia have begun settling select energy transactions in Bitcoin and other digital assets. Bolivia, facing constraints on foreign reserves and payment networks, announced plans to import energy using digital assets as payment rails. In Europe, French state-backed utility EDF is exploring Bitcoin mining as a use case for excess electricity, viewing domestic mining as a way to monetize surplus supply in a volatile energy pricing environment.

Sigel argued that these developments are not just theoretical use cases but represent real-time monetary realignment. He suggested that the latest tariffs may act as a catalyst for this transition by forcing nations to reassess their reliance on US-dominated financial systems. In this context, the tariffs are not just an economic story but may accelerate Bitcoin's role in the emerging multipolar order.

Sigel advised investors to closely monitor Federal Reserve policy, as dovish shifts in rate expectations and rising liquidity have historically boosted Bitcoin. He also highlighted the US Dollar Index as a critical indicator, suggesting that any dollar weakness could reinforce Bitcoin's status as a hedge. Despite recent market volatility, US-listed spot Bitcoin ETFs remain net positive by approximately $600 million this year, supported by inflows in late March. Sigel noted that continued demand for ETF products and on-chain activity reflects growing institutional interest in Bitcoin.