In light of escalating global trade tensions and increasing economic uncertainty, Bitwise, an institutional investment firm focused on cryptocurrency, remains optimistic about its year-end Bitcoin price expectations.
On April 9, Bitwise Chief Investment Officer Matt Hougan reaffirmed his forecast from December, predicting that Bitcoin might reach $200,000 by the end of 2025.
Hougan noted that recent shifts in U.S. trade policy, particularly the renewed focus on tariffs initiated by former President Donald Trump, could serve as favorable factors for Bitcoin’s value.
Weaker Dollar Could Enhance Bitcoin’s Global Marketability
According to Hougan, the current U.S. administration’s inclination to weaken the dollar—at the risk of undermining its status as the world’s reserve currency—could have positive implications for decentralized assets such as Bitcoin.
He referenced comments made by Steve Miran, chair of the White House Council of Economic Advisers, during a speech on April 7. Miran criticized the dollar’s reserve status for distorting global trade dynamics and diminishing American manufacturing potential.
Hougan asserts that a conscious move towards a weaker dollar may yield both immediate and long-term effects on Bitcoin’s future.
“Historically, there has been a noted inverse correlation between the U.S. Dollar Index (DXY) and Bitcoin,” Hougan explained. “A declining dollar often results in an increase in Bitcoin’s value. I anticipate this trend will persist.”
TradingView data shows that the DXY, which measures the dollar against a basket of six key currencies, has fallen more than 7% since the beginning of 2025.
In Hougan’s long-term view, a shift away from reliance on a single global reserve currency could lead to a more diversified financial system.
In such a scenario, both Bitcoin and gold might assume more significant roles in global finance.
“If the stability of the dollar is questioned, it would prompt governments and corporations to explore alternative forms of currency,” he remarked.
In support of this perspective, VanEck recently highlighted that China and Russia have begun conducting some energy transactions using Bitcoin, signaling a potential transformation in global trade practices.
At present, Trump has put a temporary hold on many of his proposed reciprocal tariffs for 90 days, preserving a 10% tariff on all countries except China, which faces a significantly higher rate of 125%.
Crypto analyst Will Clemente expressed similar sentiments, labeling Bitcoin as “the fastest horse” in today’s uncertain economic landscape.
Coming out of this drawdown, likely post-intervention, I feel strongly that Bitcoin will be the fastest horse. It’s a pure reflection of liquidity and no earnings; if anything, economic uncertainty/deglobalization are positive for Bitcoin. Feeling marginally more bullish. pic.twitter.com/67o2kHBJgk
— Will (@WClementeIII) April 9, 2025
China’s Yuan Devaluation May Spark Bitcoin Bull Run, According to Arthur Hayes
In another analysis, BitMEX founder Arthur Hayes suggested that if China responds to U.S. tariffs by devaluing the yuan, it could trigger a significant movement of capital toward Bitcoin.
Hayes drew comparisons to events in 2013 and 2015, when similar economic conditions drove Chinese investors to seek refuge in Bitcoin as a safeguard against currency depreciation.
If not the Fed then the PBOC will give us the yachtzee ingredients. CNY deval = narrative that Chinese capital flight will flow into $BTC. It worked in 2013, 2015, and can work in 2025. Ignore China at your own peril. pic.twitter.com/LAOeQZEjZt
— Arthur Hayes (@CryptoHayes) April 8, 2025
Recently, cryptocurrency markets faced severe corrections during an event referred to as “Black Monday,” with total liquidations surpassing $1.36 billion in a single day.
This disruption was not isolated to cryptocurrency; U.S. stock futures also experienced sharp declines, raising concerns about a broader market crash.
S&P 500 futures witnessed a drop of 5.98%, while Nasdaq 100 futures fell by 6.2%, and Dow futures decreased by 5.5%, indicative of a tumultuous start to the trading week.
Currently, Bitcoin is trading at approximately $81,700, showing a 7.5% increase within the last 24 hours, even as it has retraced 32% from its peak in January—a trend reflecting typical corrections during bullish market phases.
The post Bitwise Sticks to $200K Bitcoin Price Target Despite Rising Global Tensions appeared first on Cryptonews.
