Trump’s Dollar Dovishness Seen as Bullish Signal for Bitcoin, Bitwise Notes

Bitwise: Trump’s Weaker Dollar Strategy Sets Stage for Bitcoin to Shine

Bitwise Asset Management is standing firm on its bold $200,000 bitcoin (BTC) year-end price prediction, saying the Trump administration’s push for a weaker dollar could be a major catalyst for the crypto market.

“The clearest takeaway from the tariff maneuvering is that the Trump administration is aiming to deflate the dollar,” said Matt Hougan, CIO at Bitwise, in a report released Tuesday. He argues that such a shift in monetary policy could ignite fresh momentum for bitcoin.

Bitcoin surged to $82,300 after President Trump announced a 90-day suspension on tariffs for non-retaliatory countries—excluding China, which now faces a steep 125% rate. The news sent crypto markets and U.S. stocks sharply higher, as investors welcomed the temporary reprieve in trade tensions.

Bitwise highlighted bitcoin’s historical inverse relationship with the U.S. Dollar Index (DXY), noting that BTC typically rises when the dollar weakens. This dynamic, the firm said, is likely to remain intact in the coming months.

Longer term, Bitwise sees a weaker dollar as a potential turning point in the global financial system. “The erosion of dollar dominance creates space for alternative reserve assets,” Hougan wrote. “Bitcoin and gold stand to benefit most in that kind of macro reset.”

With institutional interest growing and macro tailwinds aligning, Bitwise sees little reason to revise its $200,000 target for BTC by the end of 2025.