Bitcoin rises as tariffs spark dollar uncertainty

The sweeping global tariffs imposed by U.S. President Donald Trump have reignited discussions about Bitcoin (CRYPTO:BTC) potentially challenging the dominance of the U.S. dollar.

Analysts suggest that economic uncertainty and diminishing trust in traditional currencies are driving investors toward Bitcoin as a viable alternative.

“Higher chance Bitcoin survives over the dollar in our lifetime after today,” Jeff Parks, head of alpha strategies at Bitwise Invest, stated in an April 9 post.

Parks emphasised that the idea of Bitcoin overtaking the dollar is no longer theoretical but “an actual truth to grapple with.”

Bitwise CEO Hunter Horsley echoed similar sentiments, arguing that declining confidence in the U.S. dollar and other foreign currencies leaves investors with limited options.

“You wind up buying Bitcoin,” Horsley said, highlighting its appeal compared to gold, which faces logistical challenges like shipping and storage.

The U.S. Dollar Index, which tracks the currency’s strength against major counterparts, has dropped 5.84% since January 1, trading at 102.193 as of April 9.

Contrary to expectations from Wall Street analysts, Trump’s tariff policies have not bolstered the dollar but instead fueled fears of recession.

On April 2, Trump signed an executive order establishing a baseline 10% tariff on all imports, effective April 5.

Additional reciprocal tariffs targeting countries with significant trade deficits followed on April 9.

These measures have contributed to a broader market sell-off, impacting both traditional assets and cryptocurrencies.

“An ever-increasing number of Americans can live off the money printer as long as the rest of the world is using the dollar,” criticised author Saifedean Ammous in an April 8 post, addressing fiat currency systems.

Ammous advocated for a shift to hard money standards like Bitcoin or gold to address systemic issues.

At the time of reporting, the Bitcoin (BTC) price was $77,361.01.