President Trump’s administration wants a weaker dollar, and that’s Bullish for Bitcoin (BTC), Asset Manager Bitwise said in a report Tuesday.
“When it comes to customs pressure, what I’m most sure this is this: Trump administration wants a significantly weaker dollar,” wrote Matt Hougan, Chief Investment Officer at Bitwise.
After a week’s market touro, Cryptocurrencies rose Wednesday after President Trump’s announcement of a 90-day break on customs duties for countries that have not reciprocated against the United States.
A weaker dollar has significant consequences for Bitcoin.
Bitvis notes that for the past five years Cryptocurrency has had a negative connection with the US Dollar Index (DXY). When the dollar falls, Bitcoin rises and Bitwise said it expects this relationship to continue in the short term.
The long -term consequences of a weaker dollar are even more positive, the report says. “A shaking in the global macro system creates an opportunity for new reserve assets to emerge,” Hougan wrote.
One step away from the US dollar as the individual reserve currency for a more broken system could give hard money, such as Bitcoin and Gold, a bigger role to play on the global macro stage, the report added.
Bitwise said it lasted its year after the end of the Bitcoin price target of $ 200,000.
The world’s largest cryptocurrency traded about $ 82,300 upon publication time.
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