With global trade tensions aflame amid US President Donald Trump\u2019s tariff moves, investors are scrambling for safe havens, and digital assets may be emerging as an entirely new class of wealth preservation.<\/p>\n
\n Cryptocurrencies can be unpredictable and are not immune to financial shocks, but their long-term trend has been upward
\n despite \u2013 or perhaps because of \u2013 turmoil in equities, commodities and other markets.\n <\/p>\n
What is certain is that where there is volatility, there is opportunity. With the right tools, savvy investors can capitalise upon that volatility, according to Martin Bottomley, Tiger Fintech NZ representative.<\/p>\n
\u201cWe probably had the biggest test of digital assets as a mainstream investment in April this year, where initial shocks saw significant single day drops,\u201d he says. \u201cHowever, as the Trump train has rolled on, a situation of \u2018any port in a storm\u2019 seems to have arisen. It appears investors are increasingly open to seeking and finding shelter in digital assets.\u201d<\/p>\n
Trump\u2019s tariff antics have disrupted global trade by escalating costs, reducing economic growth, and fostering uncertainty. Research from the Peterson Institute for International Economics<\/a> indicates that the tariffs could hurt growth in the US and globally, while also pushing up prices \u2013 especially if other countries hit back with their own trade barriers. Similarly, a BBVA Research analysis<\/a> projects a potential decline in global trade flows and thus a decline in GDP. <\/p>\n That, Bottomley, stresses, is the storm. The traditional \u2018port\u2019 in such a storm is gold and other precious metals, or for more sophisticated investors, options and futures. \u201cBut it isn\u2019t the only port. Given the performance of digital assets through the Trump presidency, there is now a case to be made for cryptocurrencies [within a balanced portfolio] too.\u201d<\/p>\n Digital assets are a broad class, with more than 25,000 cryptocurrencies available. Bitcoin remains the most prominent (and valuable). Cryptocurrency markets shook at the first blush of Trump\u2019s tariffs early this year, with initial announcements triggering sharp selloffs followed by partial recoveries.<\/p>\n In April, the \u2018Liberation Day\u2019 tariffs, which imposed 10% baseline duties on imports and higher rates on key nations including China, with the announcement in five days, Bitcoin plummeted from nearly US$86,759 to US$78,704, Ethereum dropped from US$1900 to US$1495, and broader crypto assets saw declines of 10% to 22%. \u201cThat,\u201d says Bottomley, \u201cwas really uncharted territory. We\u2019ve subsequently seen Bitcoin recovering to all-time highs. The tariffs haven\u2019t gone away, but the digital assets have rebounded potently.\u201d<\/p>\n \u201cYou might be a MAGA maximalist and believe fervently in President Trump\u2019s mission. Or, you might see the man as the devil incarnate,\u201d says Bottomley. While those emotions are easy to understand, he adds, they may be hard to compartmentalise when it comes to making investment decisions.<\/p>\n \u201cFor many, this has meant a flight to value in digital assets including Bitcoin, Ethereum and other cryptocurrencies. For others, it has meant placing funds in dividend-paying stocks. And for yet others, it could mean trading call or put options, depending on where you see the market heading.\u201d<\/p>\n Bottomley acknowledges that the value of cryptocurrencies has been just as divisive as the elected leaders of the US and the dramatis personae of the internet are consistently vocal about this.<\/p>\n \u201cWhat\u2019s actually important, I think, for everyone from the novice to the more sophisticated New Zealand investor, is access to a platform which allows you to do just that. Make decisions and allocate money to any asset class, in multiple markets, along with access to products like options and futures,\u201d Bottomley says.<\/p>\n He says the aim of Tiger Fintech is to make as many assets as possible available to as many people as possible. \u201cThat\u2019s what we\u2019re here to do. We empower the investor with the tools to put their convictions into the market, with zero friction.\u201d<\/p>\n With the September launch of cryptocurrency trading, Tiger Fintech says it is strengthening its position as the app of choice for New Zealand investors. The platform offers access to Bitcoin, Ethereum and a suite of other digital assets \u2013 plus equities, options, futures and more \u2013 all in one place.<\/p>\n