Bitcoin is increasingly used in international trade, particularly by countries seeking to avoid the US controlled financial system. Russia and China reportedly used Bitcoin to resolve energy transactions. Bolivia has announced plans to pay for imported electricity using cryptocurrency. The French EDF is considering Bitcoin mining with surplus electricity normally sent to Germany. These moves reflect a growing interest in using digital assets for cross-border trade as economic tensions continue to rise.
On April 2, the Trump administration announced tariffs of up to 104% on Chinese imports. In response, China has imposed retaliatory tariffs of up to 84% on US goods from April 10th. The trade war has caused instability in traditional markets, urging investors to consider alternatives like Bitcoin and gold. Analysts say Bitcoin is attractive in this climate. Because it is not linked to any government and cannot be manipulated like a national currency.
Bitise CEO Hunter Horsley explained that in an era of uncertainty, investors want to avoid both the US and other countries’ assets due to fears of currency devaluation. He said Bitcoin offers a unique solution. It cannot be debased and can be easily accessed and controlled. Vanek’s Matthew Sigel added that Bitcoin is becoming more than just a speculative asset, and real-world use cases like international trade settlements are beginning to emerge.
At the same time, the US dollar is weakening, and foreign investors are being pulled back from US assets. Since January, the US Dollar index has fallen 6.1%. In 2024, foreigners held approximately $62 trillion in US assets, but that figure is currently declining. China has also told state banks to cut their dollar reserves, and Russia has long asked them to trade outside the US system.
Nansen analyst Aurelie Barthere said Gold remains a top-safe haven asset, but Bitcoin is beginning to gain traction. She noted that the People’s Bank of China is increasing its gold reserves while reducing US Treasury holdings. This trend can continue regardless of how Bitcoin fits into the photo.
Bitcoin’s response to recent jumps in US Treasury yields has been stifled, suggesting it is not very linked to traditional market movements. Minnesota consultant Michael Van de Poppe said once trade tensions are eased, investors can return to high-risk assets, including cryptocurrencies. Meanwhile, the US List Spot Bitcoin ETP has shown ongoing institutional interest, seeing a net inflow of around $600 million in late March.
Gold remains the dominant safe haven, but Vanek’s Imarcasanova said that as global uncertainty deepens around the world, Bitcoin could ultimately make Bitcoin a stronger competitor.