Is Bitcoin The Answer For 2025’s Top Concerns Tariffs & Inflation?

Highlights

• Rising tariffs have caused significant disruptions in financial markets, affecting Bitcoin and traditional assets.
• A JPMorgan survey reveals inflation and tariffs are top concerns for institutional investors in 2025.
• Experts predict protectionist policies will accelerate the transition to digital financial systems, with Bitcoin as a key player.

Rising tariffs have significantly disrupted financial markets, including cryptos like Bitcoin. Following recent trade policy announcements in February, led to sharp fluctuations, with Bitcoin’s price plummeting sharply.

The implementation of 25% tariffs on imports from Mexico and Canada, along with a 10% tax on Chinese products, triggered financial turbulence.

Although a temporary pause on additional tariffs offered a momentary reprieve, it did little to alleviate the prevailing uncertainty.

While this short-term volatility raises concerns, some analysts suggest that tariffs could ultimately drive long-term adoption of Bitcoin. Also, a survey says tariffs and inflation are the biggest subjects for 2025’s momentum.

As trade uncertainty escalates, the investors are now reorganizing their portfolios in response to emerging economic challenges, with many viewing Bitcoin as a potential hedge against policy-driven financial disruptions.

Moreover, Tariff policies are raising alarms about inflation and economic stability and putting pressure on traditional industries.

As uncertainty mounts, both investors and businesses are increasingly considering Bitcoin as a viable alternative to government-regulated financial systems.

Keep reading to know more.

Survey: Inflation & Tariffs Primary Concerns for Institutional Investors in 2025

A most recent survey by JPMorgan Chase has revealed a peculiar survey that highlights the difference between the driving factors of this year from last couple of years.

In that survey, it clearly revealed in an organized mannner that inflation and tariffs are top concerns for institutional investors in 2025.

Over half of the participants recognized these factors as having significant impacts on global financial stability.

Per the data showed in that survey highlights a notable rise in worries about inflation and tariffs compared to previous years.

In 2024, only 27% of respondents prioritized these issues at the highest level, but that figure has surged to 51% today.

This shift in perspective underscores how new economic policies are becoming crucial for shaping effective investment strategies.

Interestingly, fears of an economic recession have lessened to 7%, which is a strong decline from last year’s 18% risk. Dats stresses that people are shifting investment focus toward rising economic costs and market volatility.

Additionally, as fiat currencies continue to lose value due to inflation, both businesses and investors are actively seeking alternative financial instruments that remain largely unaffected by government policies.

Cryptocurrency, especially Bitcoin, presents that decentralized option as a potential safeguard against the instability driven by inflation.

Survey Highlights Biggest Challenges in 2025

Furthermore, JPMorgan’s e-Trading report also surveyed traders about their primary concerns regarding market structure, where they have grave concerns about the volatile markets.

The findings revealed that access to liquidity, regulatory changes, and the costs associated with market data are the top issues on their minds, particularly as they consider the implications for assets like Bitcoin.

The survey also highlighted a notable trend, where traders anticipate a rise in digital trading across all product categories in the coming year.

This includes everything from emerging market rates to commodities, credit spreads, and even crypto like Bitcoin, indicating a shift toward more digital trading practices.

Experts: Protectionist Policies Could Spur Transitino to DeFi

Many experts believe that the new administration should focus on protectionist policies to quicken the shift toward digital financial systems.

As businesses face increasing challenges in rebuilding their manufacturing bases, they are compelled to seek alternative economic models, especially since immediate relief seems unlikely.

In this context, Bitcoin stands out as a compelling option due to its independence from centralized control, making it particularly appealing during financial uncertainty.

Simiarly, the rise of stringent financial transaction restrictions imposed by governments has contributed to a steady erosion of trust in traditional economic systems.

As regulatory pressures mount, digital assets, including Bitcoin, are anticipated to gain traction in international trade and investment.

Also, smart contracts are set to revolutionize global trade by automating transactions and minimizing the need for intermediaries.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.