Bitcoin Emerges as Trade War Winner Amid Crypto Collapse

As President Trump’s trade war expands, cryptocurrencies are getting hammered — but Bitcoin is bucking the trend.

While most digital assets are deep in the red for the year, Bitcoin has climbed 14% over the past month. Investors, rattled by tariff tensions and economic uncertainty, are treating Bitcoin more like gold — a safe place to park money in turbulent times.

The shift isn’t just based on sentiment. BlackRock’s 2024 report, Bitcoin As a Unique Diversifier, examined six major global crises between 2020 and 2024. In five of them, Bitcoin beat gold in long-term performance — and in half, it outpaced gold in both the short and long run.

The rebound also ties into growing institutional interest. Spot Bitcoin ETFs launched in early 2024 have drawn more than $100 billion from investors. Hedge funds were first in, followed by big banks, pension funds, and now talks of sovereign wealth fund involvement are heating up.

Support from Washington is also a factor. Trump’s administration has taken steps to boost Bitcoin adoption, including the launch of a Strategic Bitcoin Reserve in March, marking Bitcoin as a national strategic asset.

With the dollar sliding and U.S. markets shaky, some analysts are even talking about “de-dollarization” — a future where Bitcoin could act as a global reserve currency. Though still far off, it reflects Bitcoin’s increasing relevance in the global financial system.

As crypto markets stumble, Bitcoin is standing firm — and may be the only digital asset capable of thriving through economic storms.