2 months ago
President Trump's medication wants a weaker dollar and that's bullish for bitcoin (BTC), plus manager Bitwise said successful a study Tuesday.
"When it comes to the tariff push, the happening i'm astir definite of is this: the Trump medication wants a importantly weaker dollar," wrote Matt Hougan, main concern serviceman astatine Bitwise.
After a week of marketplace turmoil cryptocurrencies surged connected Wednesday pursuing President Trump's announcement of a 90-day intermission connected tariffs for countries that haven't retaliated against the U.S..
A weaker dollar has important implications for bitcoin.
Bitwise notes that implicit the past 5 years the cryptocurrency has had a antagonistic correlation to the U.S. Dollar Index (DXY). When the dollar falls, bitcoin rises, and Bitwise said it expects this narration to proceed successful the abbreviated term.
The longer-term implications of a weaker dollar are adjacent much positive, the study said. "A shake-up successful the planetary macro strategy creates an accidental for caller reserve assets to emerge," Hougan wrote.
A determination distant from the U.S. dollar arsenic the azygous reserve currency to a much fractured strategy could springiness hard money, specified arsenic bitcoin and gold, a larger relation to play connected the planetary macro stage, the study added.
Bitwise said it was sticking to its year-end bitcoin terms people of $200,000.
The world's largest cryptocurrency was trading astir $82,300 astatine work time.
Read more: Bitcoin's Resilience During Tariff Chaos Impresses Wall Street Firm Bernstein
English (US) 