Rates and commercial tensions could be positive for the adoption of Bitcoin (BTC) in the medium term, said Grayscale assets manager in a research report on Wednesday.
The highest rates result in a stagflation (stagnant economic growth together with inflation, which is negative for traditional assets, but positive for scarce products such as gold, according to the report.
Bitcoin is considered hard money, similar to digital gold, and looks like a modern value store, the report said.
Cryptocurrencies increased on Wednesday after the announcement of President Donald Trump of a 90 -day pause on tariffs for countries that have not retaliation against the United States.
“Commercial tensions can exert pressure on the reservation demand of the US dollar, opening space for competitive assets, including other fiduciary currencies, gold and bitcoin,” said Grayscale.
The historical precedent suggests that the weakness in dollars and inflation above average can persist, and Bitcoin is likely to benefit from said macro fund, said the asset manager.
“A market structure that improves quickly, backed by changes in the United States government policy” could help expand the Bitcoin investors base, the report added.
Read more: Trump’s administration wants a weaker dollar and that is positive for Bitcoin: Bitwise
