Weaker Dollar: A Positive Shift for Bitcoin, According to Bitwise

Key Insights

Weaker Dollar and Bitcoin: The Trump administration’s inclination toward a weaker dollar is seen as beneficial for bitcoin, as stated by Bitwise.
Emerging Reserve Assets: The report highlights that reducing reliance on the U.S. dollar might lead to the emergence of new reserve assets.
Bitcoin Price Target: Bitwise remains confident in its target, anticipating bitcoin to hit $200,000 by the end of 2025.

Full Story

President Trump’s administration is advocating for a weaker dollar, which could support bitcoin’s rise according to asset manager Bitwise in a recent report. Matt Hougan from Bitwise indicated:
“When regarding tariff actions, it’s clear the Trump administration seeks a notably weaker dollar.”

Translation: Cando sobre las acciones arancelarias, está claro que la administración de Trump busca un dólar notablemente más débil.

After market fluctuations subsided, cryptocurrencies experienced a rally following Trump’s announcement of a 90-day tariff pause on certain countries. The report suggests that a weaker dollar has a favorable relationship with bitcoin, noting an inverse correlation where a declining dollar leads to an increase in bitcoin value. Bitwise expects these trends to persist in the short term.

The longer-term perspective indicates that a weakened dollar could reshape global financial dynamics, inviting more significant roles for hard assets like bitcoin and gold. Bitwise underlines its target of $200,000 for bitcoin, which was trading at roughly $82,300 at the time of reporting.