TL;DR

$200K Target Amid Tariff Fallout: Bitwise backs its $200K Bitcoin price target for 2025, believing Trump’s tariff policies will weaken the U.S. dollar and fuel Bitcoin’s ascent.
Alternative Reserve Narrative: As trade tensions mount, Hougan argues that diminishing confidence in the dollar will push governments and corporations toward decentralized assets like Bitcoin, enhancing its role as an alternative global reserve asset.
Institutional Confidence & Market Resilience: With Bitcoin rebounding and gaining traction, strong institutional adoption and its liquidity-driven nature position it for an explosive bull run despite ongoing economic uncertainties.

Institutional crypto investment firm Bitwise is doubling down on its ambitious $200,000 Bitcoin price target for 2025 despite escalating global trade tensions. Bitwise Chief Investment Officer Matt Hougan remains confident that recent tariff policies, particularly those introduced by President Donald Trump, could catalyze Bitcoin’s rise.

Hougan argues that the administration’s push for a weaker U.S. dollar could significantly benefit decentralized assets like Bitcoin. He points to the U.S. Dollar Index (DXY), which has dropped over 7% since the start of 2025, reinforcing the historical inverse correlation between Bitcoin and the dollar.

Tariffs and the Shift Toward Alternative Reserve Assets

Trump’s latest tariff strategy has sent shockwaves through global markets, prompting concerns about inflation and trade disruptions. However, Hougan sees this as an opportunity for Bitcoin to solidify its role as a global reserve asset.

“When the stability of the dollar comes into question, governments and corporations have to look elsewhere,” Hougan stated. He envisions a future where the world moves away from a single reserve currency system toward a more fractured model, with Bitcoin and gold playing a larger role in international finance.

Adding weight to this perspective, China and Russia have reportedly begun settling some energy transactions in Bitcoin, signaling a potential shift in global trade dynamics.

Institutional Adoption and Market Resilience

Despite recent volatility, Bitcoin has shown resilience, rebounding 7.5% in the past 24 hours to $81,700. Bitwise believes that institutional adoption will continue to drive Bitcoin’s upward trajectory, particularly as investors seek hedges against economic uncertainty.

Crypto analyst Will Clemente echoed this sentiment, calling Bitcoin “the fastest horse” in the current macroeconomic landscape. He argues that Bitcoin’s liquidity-driven nature makes it uniquely positioned to thrive amid deglobalization and financial instability.

The Road to $200K

Skeptics doubt that Bitcoin will hit Bitwise’s $200,000 goal, but Hougan is confident. He believes that trade tensions, worries about inflation, and increased institutional adoption are crucial factors that could push Bitcoin to new heights.

As the world navigates economic uncertainty, Bitcoin’s role as a decentralized, non-sovereign asset may become more critical than ever—potentially setting the stage for its most explosive bull run yet.

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Filed under: News - @ April 10, 2025 11:31 am