Trump Tariffs Raise Bitcoin Inflation Hedge Potential, Analysts Say

Multiple analyses suggest that President Trump's proposed tariffs could significantly impact Bitcoin's role in the global financial system. Crypto research firm Messari and BlackRock CEO Larry Fink indicate that if tariffs weaken the U.S. dollar's dominance or spur inflation, Bitcoin could be increasingly viewed as an inflation hedge and a long-term store of value, potentially decoupling from its current high correlation with U.S. equities. Additionally, Trump administration officials are reportedly considering using tariff revenues to purchase Bitcoin for a new Strategic Bitcoin Reserve, a move that has sparked both industry support and criticism from economists who argue it is fiscally unsound. Galaxy Digital's head of research, Alex Thorn, also predicts the U.S. government will accumulate Bitcoin in 2025, possibly by selling other digital assets rather than using cash. These developments highlight the growing debate over Bitcoin's potential as both a government reserve asset and a hedge against macroeconomic instability. However, skepticism remains about the effectiveness and consequences of such policies, especially regarding their impact on taxpayers and traditional financial systems.