According to a recent VanEck report, China and Russia are using Bitcoin to settle some energy trades. The development follows escalating global trade tensions after the Trump administration issued a tariff package targeting imports from China and other countries on April 2. The announcement has drawn fears of greater monetary and geopolitical fragmentation.
Matthew Sigel, Head of Digital Assets Research for VanEck, said interest in Bitcoin as a settlement mechanism is becoming less speculative. Bolivia has also joined China and Russia in announcing plans to import electricity through crypto-based payments. French energy provider EDF is also considering Bitcoin mining with surplus electricity that it currently exports to Germany.
The report says these developments are part of a broader change in how digital assets are being used in global trade, especially by countries seeking alternatives to the U.S.-dominated financial infrastructure. Using digital assets to settle transactions could be a sign that some countries are diversifying their trade and payment systems.
Investors are also watching the Federal Reserve's evolving position closely. Dovish turns in interest rate expectations and rising liquidity conditions have historically buoyed Bitcoin performance, Sigel adds.
The U.S. Dollar Index (DXY) is also an important signal — persistent dollar weakness may bolster Bitcoin as a macro hedge. While 10-year Treasury yields spiked on April 7, Bitcoin's muted response indicates decreased sensitivity to traditional macro headwinds. U.S.-listed spot Bitcoin ETPs are also net positive by around $600 million in the year, and inflows recommenced at the end of March.
Also on the radar are on-chain activity and possible retaliatory measures from China or the EU to circumvent dollar-based systems as catalysts for further crypto adoption.
As per Kraken's price feeds , Bitcoin is trading for $77,404.85, down from recent highs near $85,000.