The administration of President Trump wants a weaker dollar and that is optimistic for Bitcoin (BTC), said Bitwise assets manager in a report on Tuesday.
“When it comes to the impulse of the rate, what I am sure is: the Trump administration wants a significantly weaker dollar,” wrote Matt Hougan, investment director in Bitwise.
After a week of market agitation cryptocurrencies, they increased on Wednesday after the announcement of President Trump of a 90 -day pause on tariffs for countries that have not taken reprisals against the United States.
A weaker dollar has significant implications for Bitcoin.
Bitwise points out that in the last five years the cryptocurrency has had a negative correlation with the US dollar index (DXY). When the dollar falls, Bitcoin increases and Bitwise said he expects this relationship to continue in the short term.
The longest implications of a weaker dollar are even more positive, according to the report. “A shake in the global macro system creates an opportunity for new reserve assets to arise,” Hougan wrote.
A removal of the US dollar as the unique reserve currency to a more fractured system could give hard money, such as Bitcoin and Gold, a more important role to play in the Macro Global stage, the report added.
Bitwise said he was attached at his target Bitcoin price of the year of the year of $ 200,000.
The largest cryptocurrency in the world quoted around $ 82,300 at the time of publication.
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