Is Bitcoin poised to skyrocket thanks to President Trump's trade policies? In this video, we dive into the latest analysis from Bitwise CIO Matt Hougan, who argues that Bitcoin stands to win if the Trump administration's push for a weaker dollar accelerates. Hougan's investor note, dated April 8, 2025, titled "The Fallout From Trump's Tariff Push," suggests that tariff threats and foreign-exchange maneuvers could drive investor interest towards "hard money like bitcoin and gold".
We explore Hougan's argument that the Trump administration intentionally wants a weaker dollar, even if it risks the dollar's status as the world's sole reserve currency. This perspective is supported by a speech from Steve Miran, chairman of the White House’s Council of Economic Advisers, who claims that the dollar's reserve function has caused "persistent currency distortions" and hurt the US manufacturing sector.
Learn why Hougan believes a weaker dollar is good for digital assets both in the short and long term. He points to Bitcoin's historical negative correlation with the US Dollar Index (DXY) for near-term gains. In the long term, global uncertainty might lead to a shift away from a single reserve currency, positioning Bitcoin as a scarce, global, digital store of value outside government control.
We also cover the immediate market reaction to Trump's announcement of a 90-day pause on most trade tariffs (excluding China) on April 9, 2025. This news led to a surge in both Bitcoin, which jumped 4.6% to $81,300, and stock prices.
While some, like Senator Chuck Grassley, have expressed concerns about the power Congress has given presidents on trade, the immediate market reaction suggests a temporary easing of tariff fears.
Could Trump's tariff policies be the catalyst that pushes Bitcoin towards Bitwise's end-of-year price projection of $200,000? Join us as we analyze the potential fallout from these economic shifts!
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