Bitwise said the US-China Trade War will cost the Dollar: Demand for Bitcoin will increase! - Coin Bulletin

robot
Abstract generation in progress

The trade war between the US and China and policies aimed at the depreciation of the dollar may create positive effects for Bitcoin (BTC) in the long run.

US President Donald Trump's comprehensive import tariffs announced last week caused panic in global markets, leading to a drop in stock prices and negatively affecting risky assets. In this uncertain process, Bitcoin (BTC) and the prices of other cryptocurrencies continue to exhibit volatile movements. As investors' concerns grow, uncertainty increases amid market fluctuations and varying expert opinions, Bitwise Chief Investment Officer Matt Hougan suggested that policies regarding the dollar's depreciation would yield positive results for Bitcoin.

Hougan states that the US government wants a weaker dollar even at the cost of undermining the dollar's status as the reserve currency. The remarks made by Steve Miran, Chairman of the White House Council of Economic Advisors, on Monday also confirmed this strategy. Miran argued that the dollar's role as a reserve currency negatively affects the US economy and distorts currency markets.

Bitwise’s CIO Hougan thinks that the price of Bitcoin will rise with the weakening of the dollar in the short term. Since 2020, Bitcoin has generally gained value when the US Dollar Index (DXY) has depreciated. Hougan stated, "When the dollar falls, Bitcoin rises. I believe this pattern will continue,".

In the long term, Hougan believes that the global movement away from the dollar will further increase the appeal of Bitcoin. With the diversification of international reserve currencies, demand for digital assets like Bitcoin may rise in addition to traditional value storage tools like gold.

In the last 24 hours, as China's new tariffs shook the markets, the price of Bitcoin fell by more than 4%, dropping below the $77,000 level. Bitwise, however, predicts that by the end of 2025, Bitcoin will reach $200,000.

BTC-0.98%
TRUMP-4.48%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Share
Comment
0/400
No comments
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate app
Community
English
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)