Bitwise Predicts Bitcoin to Reach $200,000 by 2025 Amid Trade Tensions

Bitwise, a prominent institutional crypto investment firm, has reaffirmed its bullish stance on Bitcoin, predicting that the cryptocurrency could reach $200,000 by the end of 2025. This forecast, initially made in December, comes despite escalating global trade tensions and economic uncertainties. Bitwise's Chief Investment Officer, Matt Hougan, believes that recent developments in U.S. trade policy, particularly the renewed tariff push under Donald Trump, could serve as catalysts for Bitcoin's growth.

Hougan argues that the U.S. administration's strategy to weaken the U.S. dollar, despite the risks to its reserve currency status, could benefit decentralized assets like Bitcoin. He cites a speech by Steve Miran, chair of the White House Council of Economic Advisers, who criticized the dollar’s reserve status for distorting global trade and undermining American manufacturing. Hougan expects that a deliberate shift away from a strong dollar could have both immediate and lasting effects on Bitcoin's trajectory.

In the short term, Hougan notes an inverse relationship between the U.S. Dollar Index (DXY) and Bitcoin, where a decrease in the dollar's value correlates with an increase in Bitcoin's price. Over the long run, he envisions a move towards a diversified global reserve currency system, where Bitcoin and gold could play more significant roles in international finance. This view is supported by recent reports that China and Russia have begun settling some energy transactions in Bitcoin, indicating a potential shift in global trade dynamics.

Meanwhile, crypto analyst Will Clemente shares Hougan's optimism, describing Bitcoin as "the fastest horse" amidst global economic uncertainty. Clemente believes that economic uncertainty and deglobalization could be positive for Bitcoin, as it reflects liquidity and is not tied to earnings. BitMEX founder Arthur Hayes also suggests that China’s potential devaluation of the yuan in response to U.S. tariffs could trigger a fresh wave of capital flight into Bitcoin, drawing parallels to similar economic conditions in 2013 and 2015.

Despite the recent market correction, often referred to as "Black Monday," where total liquidations exceeded $1.36 billion, Bitcoin has shown resilience. Currently trading around $81,700, Bitcoin has seen a 7.5% increase in the past 24 hours, despite a 32% pullback from its January peak. This mirrors past bull market corrections, indicating that Bitcoin's long-term trajectory remains robust.