After the early slides, Bitcoin reversed the direction. We are now approaching regaining our $100,000 price level.
Many investors are beginning to see Bitcoin as a safe haven and a potential hedge against global uncertainty.
If the trade battle escalates in 2025, it could gain momentum as a potential reserve currency for the global financial system.
10 stocks I like more than Bitcoin›
There is no denying that new global tariffs in 2025 have upside down the crypto market. Look at the top 50 cryptocurrencies ranked by market capitalization. Only a handful of them are still increasing the year.
One of them is Bitcoin (Cryptography: BTC)this has proven to be surprisingly resilient. It has now increased by 12% over the past 30 days, with 1% for the year increasing by 1%. It is very simply the best cryptocurrency to buy in the current customs warfare, and here’s why:
There is a simple reason why Bitcoin was able to earn 1% that year. Investors increasingly see it as a hedge against economic and geopolitical uncertainty. Historically, it has been unrelated to any major asset class. In short, you can jig if the other assets are zag. So, even if the entire US stock market is crumbling due to tariffs, the crypto could still defy the trend. It is extremely valuable as a potential hedge.
Moreover, digital coins have been proven again and again to be resilient to economic and geopolitical shocks. Last September, Black Rock (NYSE: BLK) We have published a 10-page report on Bitcoin’s unique diversifying properties.
It included an entire section on how well they endured during times of crisis. BlackRock saw six specific shocks to the global economic system that occurred between 2020 and 2024 and found that it actually outweighed gold in five of these six cases.
That’s interesting. Because gold has historically been one of the safe assets investors need to hold during the crisis. That’s why gold has skyrocketed past the $3,000 mark this year. And that’s why some analysts think it could even reach $4,000 in early 2026.
So, buying the concept that Bitcoin is “digital gold” could start squeezing the performance gap with precious metals over the next eight months. It can be set up nicely for a nice mini rally in the second half of 2025, even if world trade fell from the container ship.
On the surface, Bitcoin has little to do with world trade, tariffs, imports, or exports. The trade actually resolved to that code is only very limited.
The story continues
Bitcoin-related trade usually includes countries that are authorized by the United States or that are outside the traditional system of world trade.
Image source: Getty Images.
However, hedge fund managers, large institutional investors, and Wall Street executives are beginning to seriously talk about digital coins as a potential reserve currency. In their view, investors around the world are beginning to lose faith in the US dollar and the US economy. If this trend accelerates, countries around the world may begin to search for alternative reserve currencies.
For over a decade, the idea that Bitcoin would eventually replace the US dollar was the pet theory of crypto enthusiasts. As they see it, the token is better than any Fiat currency. Digital, global, non-Yorking, and discovery.
But until this year, few would have imagined a day when investors didn’t want to invest in US assets, hold US dollars, or buy US Treasury debts. But unfortunately, if this current tariff situation is not sorted out quickly, it is where we can head.
Bitcoin could be a beneficiary of the de-cooperative trend. Even if Bitcoin did not become the world’s “official” reserve currency, it’s easy to imagine a scenario in which governments and central banks around the world will start buying more Bitcoin. As you know – just in case. And a new purchase of that type will certainly make the price higher.
It’s fascinating to see how quickly investors’ perceptions have changed over the past few months. In their view, Bitcoin has changed from a highly unstable risk-on asset to a relatively safe risk-off asset.
As a result, some investors are beginning to resume price forecasts again. Currently, the online forecast market suggests there is a 49% chance that Bitcoin will reach $125,000 in 2025.
Of course, $125,000 is significantly below bullish forecasts from January, when many people expected prices to double from the $100,000 level. However, given all the confusion and uncertainty about this year’s tariffs, I am very pleased with the 25% profit that year.
Consider this before purchasing inventory with Bitcoin.
The Motley Fool Stock Advisor team of analysts has identified what investors consider to be the 10 best stocks to buy now. The 10 stocks that have made the cut could potentially generate monster returns over the next few years.
When should you think about it?NetflixI created this list on December 17, 2004…If you invested $1,000 at the time of recommendation,$613,546! * Or in the case of nvidiaI created this list on April 15, 2005… If you invested $1,000 at the time of recommendation,There is $695,897! *
Now it’s worth notingStock AdvisorThe total average return rate893% – Market-breaking outperformance compared to162%For the S&P 500. Don’t miss out on the latest Top 10 list that you can use when participatingStock advisor.
View 10 shares »
*Stock Advisor will return as of May 5, 2025
Dominic Basulto has a position in Bitcoin. Motley Fool has a position and recommends Bitcoin. Motley Fools have a disclosure policy.
The best cryptocurrency to buy at Trump’s customs war was originally published by The Motley Fool
