Tariffs and trade tensions could ultimately be positive for bitcoin (BTC) adoption in the medium term, asset manager Grayscale said in a research report Wednesday.

Higher tariffs result in stagflation— stagnant economic growth coupled with inflation — which is negative for traditional assets, but positive for scarce commodities such as gold, the report said.

Bitcoin is considered hard money, akin to digital gold, and is viewed as a çağdaş store of value, the report noted.

Cryptocurrencies surged on Wednesday following President Donald Trump’s announcement of a 90-day pause on tariffs for countries that haven’t retaliated against the U.S.

“Trade tensions may put pressure on reserve demand for the U.S. Dollar, opening space for competing assets, including other fiat currencies, gold, and bitcoin,” Grayscale said.

Historical precedent suggests that dollar weakness and above-average inflation may persist, and bitcoin is likely to benefit from such a macro backdrop, the asset manager said.

“A rapidly improving market structure, supported by U.S. government policy changes” could help broaden bitcoin’s investor base, the report added.