Bitwise Predicts Bitcoin to Hit $200,000 by Year-End Amid Trade Tensions

Bitwise, a prominent institutional crypto investment firm, has reaffirmed its prediction that Bitcoin will reach $200,000 by the end of the year, despite the escalating global trade tensions. In an April 9 blog post, Bitwise's chief investment officer, Matt Hougan, reiterated the firm's bullish stance on Bitcoin, stating that the current geopolitical climate could actually benefit the cryptocurrency.

Hougan suggested that the U.S. administration's push for a weaker dollar, as part of its global tariff strategy, could create favorable conditions for Bitcoin. He cited a speech by the chairman of the White House Council of Economic Advisers, who criticized the dollar's reserve status for causing persistent currency distortions and unsustainable trade deficits. Hougan believes that a weaker dollar could lead to both short-term and long-term gains for Bitcoin.

In the short term, Hougan noted that historical data shows a correlation between a falling U.S. Dollar Index (DXY) and rising Bitcoin prices. He expects this pattern to continue, with a weaker dollar potentially driving up the price of Bitcoin. In the long term, Hougan argued that disruption to the global reserve currency system could create opportunities for alternative reserve assets, including Bitcoin and gold. He predicted that the world will move towards a more fractured reserve system, with hard money like Bitcoin and gold playing a bigger role.

Hougan's comments come as the U.S. President issued a 90-day pause on nearly all of his earlier announced “reciprocal tariffs,” keeping a baseline 10% tariff on all countries besides China, which he lumped with a 125% tariff. This move has added to the uncertainty in global markets, which some analysts believe could be positive for Bitcoin. Crypto trader and analyst Will Clemente echoed this sentiment, stating that Bitcoin will be the fastest horse coming out of this drawdown, as it is a pure reflection of liquidity and has no earnings, making economic uncertainty and deglobalization positive for Bitcoin.

Bitwise's prediction for Bitcoin's price is based on the firm's analysis of the current geopolitical climate and the potential impact of a weaker dollar on the cryptocurrency market. While the firm's prediction is bullish, it is important to note that the cryptocurrency market is highly volatile and subject to rapid changes. Investors should conduct their own research and exercise caution when investing in Bitcoin or any other cryptocurrency.