In a recent analysis by a top global investment firm, it has been suggested that the economic backlash from China and the European Union (EU) in response to new US tariffs could potentially provide a boost to digital assets. Matthew Sigel, the head of digital assets research at VanEck, took to social media to share his insights on how these tariffs could impact the adoption of Bitcoin (BTC) in the energy trade sector.
Sigel pointed out that countries like China, Russia, and Bolivia have already started using Bitcoin for settling energy transactions, with French utility EDF exploring the possibility of using surplus electricity to mine Bitcoin. These developments indicate a shift from digital assets being mere speculative tools to becoming integral components in energy trade and financial realignment. Sigel emphasized that the recent tariffs imposed by President Trump could further propel Bitcoin’s role in the evolving multi-polar economic landscape.
He advised traders to closely monitor the policies of the US Federal Reserve, China, and the EU to better understand the potential effects on the crypto markets. Sigel highlighted the importance of factors like the strength of the US dollar, Bitcoin exchange-traded fund (ETF) inflows, and on-chain activity in shaping the future of digital assets. He suggested that any retaliatory measures from China or the EU that move away from the US dollar could bolster the case for digital assets as alternative financial instruments.
The recent executive order signed by President Trump, imposing tariffs on several nations to safeguard domestic manufacturing, has caused volatility in both traditional markets and digital assets. The announcement led to a sharp decline in prices across the board.
As the global economic landscape continues to evolve, the role of digital assets like Bitcoin in energy trade and monetary realignment is expected to grow. Investors are advised to stay informed about market trends and geopolitical developments that could impact the use cases for digital assets.
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Featured Image: Shutterstock/Eky Rima Nurya Ganda.