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Teng suggests economic instability from global trade wars could push long-term investors toward Bitcoin as a safe, non-sovereign store of value amid macro uncertainty.
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Geopolitical speculation, including tariff-related news, shows Bitcoin’s price remains highly sensitive to policy signals and global risk sentiment.
Amid escalating global trade tensions, Binance CEO Richard Teng has provided his perspective on how these economic frictions could influence the cryptocurrency market, particularly Bitcoin. As previously reported in CNF post, following his predecessor Changpeng Zhao’s stance that Bitcoin is becoming “unavoidable,” Teng compares its importance to money and the internet in the global financial landscape.
Teng suggests that while immediate market reactions may be negative, the long-term outlook for Bitcoin could be bolstered by its appeal as a non-sovereign store of value. In his tweet, he stated:
There’s been a lot of discussion about the recent tariff escalation, and I want to share my perspective on what this means for crypto markets both now and in the long term. The resurgence of trade protectionism is introducing significant volatility across global markets — and crypto is no exception.
Short-Term Volatility Amid Trade Protectionism
Teng acknowledges that the resurgence of trade protectionism introduces significant volatility across global markets, including cryptocurrencies. In the short term, such macroeconomic uncertainties often lead to a risk-off approach among investors, causing them to pull back as they assess the evolving landscape of growth, policy, and trade. Teng added:
“In the short term, this kind of macro uncertainty tends to trigger a risk-off response, with investors pulling back as they wait to see how things unfold around growth, policy, and trade.”
Bitcoin as a Hedge Against Economic Uncertainty
Despite potential short-term fluctuations, Teng remains optimistic about Bitcoin’s role in the face of ongoing economic and policy uncertainties. He posits that sustained economic volatility may drive increased interest in cryptocurrencies like Bitcoin, which are perceived as non-sovereign stores of value.
Market Reactions to Tariff Speculations
Recently, Bitcoin experienced a brief surge above $80,000 following reports that President Donald Trump was contemplating a 90-day pause on tariffs for all countries except China.
However, these reports were later refuted by the White House, leading Bitcoin to retreat to around $78,000. This incident underscores the sensitivity of cryptocurrency markets to geopolitical developments and policy speculations.
Analyst Predictions Amid Political Developments
Analysts have offered varying forecasts for Bitcoin’s trajectory in light of recent political events. According to Investors.com, some predict that pro-crypto policies could propel Bitcoin’s price to $150,000 by 2025, while others caution that failure to implement such policies might result in a correction to $80,000.
Adding to the Binance Sees Bitcoin DeFi as key catalyst for next BTC bull run, as CNF recently highlighted, Bitcoin is trading at approximately $76,261, reflecting a decline of about 3.60% in the past day.
