Trump’s tariffs exposed the systemic weakness of markets — unpredictable U.S. policy can wreak havoc globally with remarkable ease. The President’s announcements of widespread tariffs in April 2025 saw markets tailspin into turmoil. So, could crypto be a wise choice when the economy is melting? This guide explores why Bitcoin might be a safe haven during a U.S. recession.
KEY TAKEAWAYS
- Safe havens evolve over time, and traditional ones like bonds and the dollar are losing trust amid growing economic instability.
- Bitcoin’s fixed supply, decentralized design, and structural independence make it a compelling potential hedge during U.S. recessions.
- Despite its promise, Bitcoin has drawbacks as a safe haven, especially for lower-income users facing volatility, high fees, and limited access.
- Bitcoin’s correlation to risk assets like tech stocks suggests it still has ground to cover before becoming a fully reliable safe haven.
What is a safe haven during a recession?
…
History of safe havens
…
Why does this matter?
…
Why Bitcoin might be a safe haven in a U.S. recession
…
- “Deflationary” properties
- Store of value
- Structural independence
Drawbacks of Bitcoin as a safe haven
…
Only time will tell
…
Frequently asked questions
…
Disclaimer
…