Michaela
Matthew Sigel, Head of Digital Assets Research at VanEck, has revealed that China and Russia are now using Bitcoin to settle energy transactions, a move sparked by President Trump’s new tariffs on China and the European Union (EU).
A report from the global investment management firm indicates that the Trump administration’s April 2 tariff package, aimed at imports from China and the EU, has rekindled global trade tensions and heightened the risk of monetary and geopolitical fragmentation.
Following the announcement, Bitcoin saw a drop from $85k to around $81k and continued to decline over the weekend. However, it has still outperformed the Nasdaq across all major timeframes.
The report further states that slower growth might not boost Bitcoin, but if tariffs hurt Gross Domestic Product (GDP) without causing inflation, the Fed may cut rates, which could benefit Bitcoin. Meanwhile, more countries are turning to neutral settlement systems, like Bitcoin, to avoid relying on traditional financial infrastructure.
“China and Russia have reportedly begun settling some energy transactions in Bitcoin and other digital assets. Bolivia has announced plans to import electricity using crypto,” Sigel wrote. “And French energy utility EDF is exploring whether it can mine Bitcoin with surplus electricity currently exported to Germany. These are early signs that Bitcoin is evolving from a speculative asset into a functional monetary tool—particularly in economies looking to bypass the dollar and reduce exposure to U.S.-led financial systems,” he added.
The report also advised investors to closely monitor changes in Federal Reserve policy, as shifts toward lower interest rates and increased liquidity have historically been favorable for Bitcoin. Additionally, the U.S. Dollar Index (DXY) remains an important indicator. If the dollar weakens over time, it could strengthen the case for Bitcoin as a hedge, especially in a climate of geopolitical uncertainty.
VanEck’s report emphasized that a decline in the value of the U.S. dollar could reinforce Bitcoin’s role as a hedge, especially in a world where geopolitical alliances are shifting. Should China or the EU retaliate against U.S. sanctions by creating alternative systems, it could further boost interest in cryptocurrencies.
Read More
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- China Hits Back: Retaliatory Tariffs and Export Controls Target Key U.S. Industries
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
