Bitcoin as a Shield Against Tariff Risks: Insights from Standard Chartered

Bitcoin can be viewed as a safeguard against tariff risks amid the increasing isolation of the United States. This was stated by Jeffrey Kendrick, head of digital asset research at Standard Chartered, as reported by The Block.

Following President Donald Trump’s declaration of April 3 as «Liberation Day,» the markets experienced a significant decline.

Kendrick believes the downturn is temporary, suggesting that digital gold could rebound to the $84,000 mark unless there is a substantial drop in traditional markets.

«US isolationism corresponds to increased risks associated with fiat currency, which ultimately benefits Bitcoin,” Kendrick commented.

He identified the $76,500 level as key support—this was the upper limit of the daily candle from November 6, 2024, formed the day after the US elections.

While acknowledging the market decline, Kendrick pointed out that Bitcoin continues to outperform major technology stocks, with the exception of Microsoft and Google.

The Mag 7 index includes shares of the so-called «Fabulous Seven» in tech: Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, and Tesla.

Kendrick encouraged looking at the first cryptocurrency as a hedge not only against US isolation, but specifically against tariff risks.

Bob Michele, the head of fixed income at JPMorgan, shared his perspective with Bloomberg, suggesting that the Federal Reserve is likely to lower rates despite comments from its chair, Jerome Powell.

The Fed chair mentioned he would closely monitor the effects of tariff policies before making decisions.

Michele remarked on this statement, noting that the current decline in stock indices resembles crises from 1987, 2008, and 2020, when the Fed consistently shifted toward emergency monetary easing.

On March 7 at 18:30 (MSK/Kiev), the Federal Reserve will hold an unscheduled meeting.

According to the CME FedWatch Tool, 60.2% of traders believe the agency will maintain its key interest rate during the upcoming meeting on May 7, while 39.8% anticipate a 25 basis point reduction.

At the time of writing, Bitcoin is trading at $77,351 (-6.4% over the past day), according to CoinGecko.

It’s worth noting that from March 29 to April 4, clients of cryptocurrency investment funds withdrew $240 million after experiencing a influx of $226 million the previous week, as reported by analysts from CoinShares.