Binance CEO Richard Teng Explains How Trade Tensions Could Strengthen Bitcoin

Richard Teng, CEO of Binance, has offered his viewpoint on the implications that increasing trade tensions will have on the cryptocurrency markets. He hypothesized that while there may be short-term volatility, the Bitcoin price could possibly gain from global economic uncertainties. Teng commented on the markets’ impact from what he refers to as “the resurgence of trade protectionism” on global financial systems.

Binance CEO Highlights A Two-Sided Effect On Bitcoin

There's been a lot of discussion about the recent tariff escalation, and I want to share my perspective on what this means for crypto markets both now and in the long term.

The resurgence of trade protectionism is introducing significant volatility across global markets — and…

— Richard Teng (@_RichardTeng) April 8, 2025

The comments come as Bitcoin briefly surged above $80,000 yesterday following reports that President Donald Trump was considering a 90-day pause on tariffs for all countries except China. These reports were later labeled “false” by the White House. This caused the cryptocurrency to retreat to around $78,000, where it currently trades.

Teng’s analysis provides that although market responses to the tensions in the short term would be negative, the long-run story for Bitcoin as a “non-sovereign store of value” will be supported through continued economic and policy uncertainty on the traditional side.

In detailing the current situation in the markets, Binance CEO Richard Teng pointed to the double role that tensions involving trade could have on cryptocurrency markets. “The resurgence of trade protectionism is introducing significant volatility across global markets — and crypto is no exception,” Teng stated in his tweet.

According to the top crypto exchange’s CEO, the immediate effect of these trade tensions tends to be negative, as investors adopt a cautious approach during periods of macroeconomic uncertainty. “In the short term, this kind of macro uncertainty tends to trigger a risk-off response, with investors pulling back as they wait to see how things unfold around growth, policy, and trade,” he explained.

Despite these short-term fluctuations, Teng expressed optimism about Bitcoin’s long-term prospects in an environment of trade tensions. He added that sustained economic volatility may even spur more interest in cryptocurrencies. “Looking ahead further, though, this environment could also spur interest in crypto as a non-sovereign store of value.”

Teng’s conclusion is shared by many cryptocurrency supporters who see Bitcoin as a substitute for mainstream financial systems when there is economic tension. He added that many long-term holders still perceive Bitcoin and other digital assets as strong in times of economic stress and changing policy dynamics.”