Tariffs and merchant stresses could ultimately be positive for the adoption of Bitcoin (BTC) in the medium term, Asset Manager Grayscale said in a research report on Wednesday.

Higher tariffs result in stagflation – stagnant economic growth combined with inflation – which is negative for traditional assets, but positive for scarce raw materials such as gold, the report says.

Bitcoin is considered hard money, akin to digital gold, and is considered a modern value of value, the report noted.

Cryptocurrencies rose Wednesday after President Donald Trump’s announcement of a 90-day break on tariffs for countries that have not reciprocated against the United States

“Merchants can put pressure on the demand for the US dollar, the opening space for competing assets, including other Fiat currency, gold and bitcoin,” Grayscale said.

Historically precedent suggests that dollar weakness and inflation above average can continue, and Bitcoin is likely to benefit from such a macro background, the Asset Manager said.

“A rapidly improved market structure, supported by US government policy changes,” could help expand Bitcoin’s investor base, the report added.

Read more: Trump -Administration wants weaker dollar and it’s positive for Bitcoin: Bitwise