Bitwise just dropped a pretty interesting report highlighting something I’ve been thinking about too: the Trump administration’s clear push for a weaker dollar might actually be super bullish for Bitcoin (BTC).
Matt Hougan, Bitwise’s Chief Investment Officer, put it bluntly: “When it comes to the tariff push, the one thing I'm most certain of is this—the Trump administration wants a much weaker dollar.” And honestly, it shows.
Markets were all over the place last week, but we saw a nice crypto rally on Wednesday right after Trump announced a 90-day tariff pause for countries that haven’t hit back at the U.S. yet.
The connection here is worth noting. Bitwise pointed out that Bitcoin has had a pretty consistent inverse relationship with the U.S. Dollar Index (DXY) over the past five years. In simple terms: when the dollar drops, Bitcoin usually climbs. They’re betting this trend will keep playing out, at least in the near future.
What’s even more intriguing is the longer-term picture. Hougan mentioned that shaking up the global macro system could actually open the door for new reserve assets to step in. If we’re heading toward a world where the dollar isn’t the top dog anymore, assets like Bitcoin and gold could become way more significant globally.
Bitwise is still holding firm on their bullish year-end Bitcoin target of $200,000—even with all the market ups and downs lately. Right now, Bitcoin is hovering around $82,300. $BTC