Bitwise doubles down on $200K Bitcoin price prediction amid trade tension

Key Points

  • Bitwise reaffirms its $200,000 Bitcoin price prediction for 2025 despite global trade tensions.
  • A falling US Dollar Index historically correlates with Bitcoin strength, according to Bitwise CIO Matt Hougan.
  • The weakening of the US dollar could lead to a more fractured reserve system, with Bitcoin and gold playing larger roles.

Summary

Bitwise, an institutional crypto investment firm, has reiterated its prediction that Bitcoin will reach $200,000 by the end of 2025, despite the backdrop of escalating global trade tensions. Matt Hougan, Bitwise's chief investment officer, argues that the fallout from President Trump's tariff policies could benefit Bitcoin, as the administration's push for a weaker dollar might undermine its role as the world's reserve currency. Hougan points out that historically, a declining US Dollar Index (DXY) correlates with Bitcoin's strength, a trend he expects to continue. He also suggests that in the long term, disruptions in the global reserve currency system could lead to a shift towards alternative reserve assets like Bitcoin and gold. This perspective is supported by recent reports of China and Russia using Bitcoin for some energy trades amidst Trump's trade war. The article also notes Bitcoin's recent price movements, with a 7.5% increase over the past 24 hours, reflecting its resilience and potential in times of economic uncertainty.

cointelegraph
April 11, 2025
Crypto
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