On February 5th, COINOTAG reported that President Trump has leveraged the International Emergency Economic Powers Act (IEEPA) to enact extensive tariffs on Mexico, Canada, and China. This strategic move raises significant concerns regarding the stability and dominance of the U.S. dollar, potentially reshaping the global trade environment. Financial analysts suggest that such actions may catalyze a shift toward Bitcoin as a preferred hedge against inflation and economic uncertainty.
James Butterfill, the Research Director at CoinShares, noted that the unconventional application of IEEPA may expedite the process of global de-dollarization. Consequently, investors are likely to pivot towards decentralized assets, including Bitcoin, as a form of economic safeguard. Furthermore, cryptocurrency derivatives trader Gordon Grant posits that the recurring invocation of IEEPA risks undermining the credibility of the dollar, thereby enhancing the allure of alternative cryptocurrencies.
Source: https://en.coinotag.com/breakingnews/bitcoin-emerges-as-a-hedge-amid-u-s-tariffs-and-dollar-dominance-concerns/