Trump’s Weak Dollar Push Could Boost Bitcoin to $200K, Says Bitwise

Bitcoin could be in for a major rally as the Trump administration signals support for a weaker U.S. dollar, according to a recent report by crypto asset manager Bitwise. Matt Hougan, Chief Investment Officer at Bitwise, emphasized, “The Trump administration wants a significantly weaker dollar,” especially in the context of recent tariff negotiations.

After a volatile week in traditional markets, cryptocurrencies rebounded sharply on Wednesday. The surge followed President Trump’s announcement of a 90-day pause on tariffs for countries that haven’t retaliated against the U.S., creating a more favorable macroeconomic environment for risk assets like bitcoin.

Bitwise highlighted bitcoin’s historical negative correlation with the U.S. Dollar Index (DXY). Over the past five years, a falling dollar has often coincided with rising bitcoin prices. The firm expects this inverse relationship to continue in the near term, making BTC a potential hedge against dollar depreciation.

Longer term, Bitwise sees even greater implications. A sustained devaluation of the dollar could disrupt the current global financial system, potentially diminishing the dollar’s dominance as the world’s reserve currency. This shift could pave the way for alternative “hard money” assets like bitcoin and gold to gain a more prominent role in global finance.

Despite current market conditions, Bitwise remains confident in its bullish outlook for bitcoin, maintaining its year-end price target of $200,000. At the time of the report’s publication, bitcoin was trading around $82,300.

With macroeconomic pressures mounting and interest in decentralized assets growing, the stage may be set for bitcoin to benefit from a changing global monetary landscape. Investors and analysts alike are watching closely as U.S. policy decisions continue to influence crypto market dynamics.