President Trump’s administration wants a weaker dollar and that is bullish for Bitcoin (BTC), the asset manager said in a report on Tuesday.
“When it comes to the tariff tariff, the thing I’m sure is this: the Trump administration wants a significantly weaker dollar,” wrote Matt Hougan, chief investment official in Bitwise.
After a weekly seizure of cryptocurrencies on the market appeared on Wednesday following President Trump’s announcement of A 90-day pauses on tariffs For countries that have not yet retaliated against the US.
A weaker dollar has significant implications for Bitcoin.
The Bitwise note that in the last five years the cryptocurrency has had a negative relationship with the US Dollar Index (DXY). When the dollar drops, Bitcoin rises, and Bitwise says it is hoped that this relationship will continue for a short time.
The longer the implications of a weaker dollar are more positive, the report said. “A shake in the global MacRO system creates an opportunity for new assets reserves to emerge,” Hougan wrote.
A transition from the US dollar as a single currency reserve to a more fractured system can provide difficult money, such as Bitcoin and gold, a bigger role to play in the global macro stage, the report added.
Bitwise said it was attached to the Bitcoin’s target price of the year $ 200,000.
The world’s largest cryptocurrency is the trade around $ 82,300 at the time of publication.
Read more: Bitcoin’s steadfastness during the tariff disturbance admires Wall Street firm Bernstein
