Bitwise has reaffirmed its year-end Bitcoin (BTC) price target of $200,000 despite intensifying global trade tensions. The firm believes recent geopolitical developments and weakening dollar signals could support Bitcoin’s rise. This renewed stance comes as the crypto market responds positively to macroeconomic shifts driven by new US trade policies.
Bitcoin Outlook Strengthens Despite Trade Instability
Investments under Bitwise maintained their year-end Bitcoin prediction of $200,000 through a blog post from Chief Investment Officer Matt Hougan on April 9. He explained that rising international trade conflicts and U.S. dollar devaluation could drive Bitcoin prices upward.
Through this strategic stance, the firm demonstrates its faith in Bitcoin by betting on it as a protective asset against the volatility of fiat currencies. Current White House policy adjustments have deepened doubts regarding the future position of the dollar.
Controversial tariffs and criticism of dollar reserve status have created uncertainty in conventional financial market systems. According to Bitwise, Bitcoin demand will escalate across various timeframes due to the uncertainty of the existing market.
From January until now, the US Dollar Index (DXY) has experienced a seven percent drop because currency confidence has decreased. Research shows that a decline in the dollar value leads to Bitcoin price appreciation, which matches Bitwise’s current market outlook. According to the analysts at Bitwise, this market trend seems set to remain the same during 2025, which will strengthen their optimistic outlook.
Weakening Dollar Could Fuel Bitcoin Demand
Hougan claimed that the current attacks against the dollar’s worldwide position will enhance the adoption of decentralized assets, including Bitcoin. During a public address on April 7, White House official Steve Miran openly questioned whether the dollar should continue as the global reserve currency. According to him, currency distortions have led to manufacturing losses and trade imbalances.
An updated trade policy from the White House represents a fundamental economic change in American policy. The American president issued a new trade policy on April 9, which established a standard 10% tariff for most foreign countries. The Chinese economy must pay a 125% tariff, which is the highest penalty, but other states obtain temporary exemptions through a 90-day suspension period.
Because of declining trust in the US dollar, the worldwide demand for assets outside of the dollar will escalate. Market professionals expect organizations and governmental bodies to examine Bitcoin and gold as substitutes for value storage. A transformation of Bitcoin’s foundations will boost its market prospects in the future.
Institutional Support Builds Amid Growing Crypto Adoption
According to Bitwise’s leadership, institutional investor momentum toward crypto arises from the widespread acceptance of crypto during uncertain economic times. According to statements from firms such as VanEck, the crypto transaction volume between China and Russia increases continuously. Studies indicate that businesses settle their energy transactions through Bitcoin electronic money transactions.
Global financial operators are transitioning into decentralized currency systems as part of a fundamental change in worldwide monetary strategies. Traditional world dollar dependence will weaken when more nations use cryptocurrencies for global transactions. The modifications led Bitwise to believe that Bitcoin would obtain a bigger position within a diverse worldwide currency reserve framework.
According to cryptocurrency experts, the current Bitcoin market reflects a typical business cycle. The asset gained 7.5% during the last 24 hours and hovered near the $81,700 point. The market recovery presents a similar trend to previous bull market behavior, even though the price now rests below its peak in January.
FAQs
Why does Bitwise believe Bitcoin will hit $200,000 this year?
Bitwise expects continued dollar weakness, trade instability, and institutional adoption to push Bitcoin toward its $200,000 price target.
How does the US Dollar Index affect Bitcoin’s price?
Bitcoin historically performed well when the US dollar index declined, as investors sought alternatives to fiat currencies.
What role do tariffs play in this prediction?
Rising tariffs increase global economic uncertainty, driving investors toward Bitcoin as a hedge against traditional assets.
Are other institutions making similar predictions?
Firms like VanEck and analysts like Will Clemente support Bitcoin’s strength amid trade war concerns and deglobalization.
Could this lead to more countries using Bitcoin for trade?
There are early signs of countries experimenting with Bitcoin for energy and commodity trades, which could increase over time.
Glossary
Bitcoin (BTC): A decentralized digital currency without a central bank or single administrator.
US Dollar Index (DXY): A measure of the US dollar’s value relative to six major foreign currencies.
Reserve Currency: A foreign currency held in significant quantities by governments for international trade and investment.
Tariff: A government imposes tax on imported goods, often used to protect domestic industries or influence trade balances.
Institutional Investor: A large entity, such as a firm or fund, that makes substantial investments on behalf of its clients.
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