In a recent blog post, VanEck’s Head of Digital Assets Research, Matthew Sigel, revealed that China and Russia have started using Bitcoin and other digital currencies for some energy transactions. This move is part of a broader trend among nations like Bolivia and France, which are also exploring crypto to reduce their dependence on the US dollar amid global trade tensions.
“These developments suggest Bitcoin is shifting from a speculative asset to a functional monetary tool,” Sigel noted, highlighting its potential appeal to economies aiming to bypass the dollar and minimize exposure to US-led financial systems.
As trade wars intensify, some analysts believe this geopolitical backdrop could benefit cryptocurrencies. Sigel advised investors to monitor Federal Reserve policies, pointing out that a weakening dollar, as seen in the declining US Dollar Index (DXY), could further strengthen Bitcoin’s position as a hedge. The DXY has dropped over 7% this year, standing at 102.5.
Bitwise’s CIO, Matt Hougan, echoed this sentiment, suggesting a weaker dollar could lead to a more fragmented reserve currency system, with Bitcoin and gold playing significant roles. Analysts also argue that a declining dollar is favorable for cryptocurrencies.
Before recent tariffs, analysts told Reuters that US trade policies are pushing Europe and other regions toward reducing their reliance on the dollar, potentially accelerating de-dollarization. Rabobank’s Jane Foley pointed out the irony of this trend, as US isolationist policies might inadvertently encourage it.
