Amid rising U.S.-China trade tensions, capital is increasingly flowing into cryptocurrencies, positioning them as a new digital safe haven. On October 10, 2025, former U.S. President Trump announced a 100% tariff on all Chinese imports effective November 1, 2025, along with export controls on key software. This announcement led to a sharp decline in global equities and commodities, while gold and U.S. Treasuries saw gains. In response to these geopolitical risks, investors are turning to stablecoins and Bitcoin as hedges against inflation and uncertainty. The GENIUS Act is also influencing stablecoin regulation, reinforcing the dollar's dominance in the digital currency space. Investors are adopting a dual strategy, using gold for defensive purposes and cryptocurrencies for potential growth.