The CEO of Binance, Richard Teng, expressed his view that increasing macroeconomic instability and U.S. protectionist measures may ultimately bolster the case for Bitcoin and other cryptocurrencies.
Teng noted that the rise in global uncertainty—partially fueled by a resurgence of U.S. protectionist policies—could hasten the adoption of cryptocurrencies, even if the immediate future appears uncertain.
In a message on X, he cited U.S. President Donald Trump’s advocacy for new tariffs as indicative of escalating protectionism, which he claims is causing “significant volatility across global markets.”
He pointed out that the crypto sector has not been immune to this turbulence.
“Such macro uncertainty typically leads to a risk-averse mentality,” Teng remarked, referring to investors pulling back from high-risk assets during times of economic and political upheaval. However, he argued that over the long term, this same instability could enhance the allure of cryptocurrencies.
“Looking ahead, this environment may also stimulate interest in crypto as a non-sovereign store of value,” he stated.
Teng emphasized that many long-term investors continue to see Bitcoin (BTC) and other digital currencies as resilient options amid policy changes and economic strains.
A safeguard against market anxieties
Although immediate sentiment might remain reserved, Teng’s observations represent a wider perspective among crypto leaders who believe the sector’s decentralized nature serves as a safeguard against increasing geopolitical and fiscal uncertainty.
Trump’s announcement of tariffs on “Liberation Day” resulted in significant unease within global markets, leading to notable volatility.
These tariffs specifically targeted crucial U.S. trading partners, imposing duties on imports as a means to influence negotiations. Trump’s strategy aligns with his historical trade policies, utilizing economic pressure to secure more favorable terms for the U.S. economy.