Bitcoin is increasingly being used in international trade, particularly by countries looking to avoid U.S.-controlled financial systems. Russia and China have reportedly used Bitcoin to settle energy transactions. Bolivia has announced plans to pay for imported electricity using cryptocurrency, and France’s EDF is considering Bitcoin mining with surplus power usually sent to Germany. These moves reflect a growing interest in using digital assets for cross-border trade as economic tensions continue to rise.
On April 2, the Trump administration announced tariffs of up to 104% on Chinese imports. In response, China imposed retaliatory tariffs of up to 84% on U.S. goods, starting on April 10. The trade war has triggered instability in traditional markets, pushing investors to consider alternatives like Bitcoin and gold. Analysts say Bitcoin is attractive in this climate because it’s not tied to any government and can’t be manipulated like national currencies.
Bitwise CEO Hunter Horsley explained that in times of uncertainty, investors want to avoid both U.S. and other nations’ assets due to fears of currency devaluation. He said Bitcoin offers a unique solution—it can’t be debased and is easy to access and control. VanEck’s Matthew Sigel added that Bitcoin is becoming more than just a speculative asset, with real-world use cases like international trade settlements starting to emerge.
At the same time, the U.S. dollar is weakening, and foreign investors are pulling back from U.S. assets. Since January, the U.S. Dollar Index has dropped by 6.1%. In 2024, foreigners held about $62 trillion in U.S. assets, but that figure is now falling. China has also told state banks to reduce their dollar reserves, and Russia has long sought to conduct trade outside of U.S. systems.
Nansen analyst Aurelie Barthere noted that gold remains the top safe-haven asset, but Bitcoin is starting to gain traction. She pointed out that the People’s Bank of China has been increasing its gold reserves while cutting U.S. Treasury holdings. This trend is likely to continue, regardless of how Bitcoin fits into the picture.
Bitcoin’s response to recent jumps in U.S. Treasury yields has been muted, suggesting it’s becoming less tied to traditional market movements. Michaël van de Poppe from MN Consultancy said that if trade tensions ease, investors may return to riskier assets, including cryptocurrencies. Meanwhile, U.S.-listed spot Bitcoin ETPs saw net inflows of about $600 million in late March, showing continued institutional interest.
Though gold remains the dominant safe-haven, VanEck’s Imaru Casanova said rising global risks could eventually make Bitcoin a stronger competitor, especially as economic and political uncertainty deepens worldwide.
