09.04.2025 18:20
Bitwise Investment Director Matt Hougan predicts that ongoing trade wars will weaken the status of the US dollar as the reserve currency and increase demand for "hard money" assets like Bitcoin. Despite all the economic tensions, Bitwise maintains its prediction that the price of Bitcoin will reach $200,000 by the end of 2025.
The comprehensive import tariffs announced by U.S. President Donald Trump last week triggered a trade war among the world's superpowers and negatively affected risk assets. Bitwise Investment Director Matt Hougan noted in a memo sent to his clients that the volatility in the market and the continuous flow of news have been challenging for investors. However, the White House's economic strategy became clearer this week.
As the Dollar Weakens, Bitcoin and Gold Strengthen
Steve Miran, the chairman of the White House Council of Economic Advisers, released a speech on Monday focusing on the dollar's role as a reserve currency. Miran stated that this dynamic negatively impacts the United States' production workforce and "distorts the currency markets."
According to Hougan, Miran's message is clear: "The dollar needs to lose value." The Trump administration wants a significantly weakened dollar, even at the risk of losing its position as the world's sole reserve currency.
This strategic move has significant implications for Bitcoin. Bitwise's CIO predicts that Bitcoin will strengthen as the dollar weakens in the short term. He noted that since 2020, when the U.S. Dollar Index (DXY) has fallen, BTC has gained in value. Matt Hougan stated, "A decline in the dollar equals a rise in Bitcoin, and I believe this trend will continue."
The long-term outlook paints an even more positive picture for Bitcoin. Tariff-focused economic rebalancing and global de-dollarization may lead different economies to turn to alternative reserve currencies. Hougan believes that during the transition to "a more fragmented reserve system," global investors will show increased interest in "hard money" assets like BTC and gold.
China's retaliatory tariffs shook the markets, and the price of Bitcoin fell by more than 4% within 24 hours, trading below $77,000. Despite all these fluctuations, Bitwise management maintains its forecast that Bitcoin will reach $200,000 by the end of 2025.