Trump’s Dollar Strategy Could Fuel Bitcoin Rally, Bitwise Says

Bitwise Asset Management is doubling down on its bullish bitcoin (BTC) outlook, maintaining a $200,000 year-end price target as the Trump administration signals a preference for a weaker U.S. dollar.

In a Tuesday report, Bitwise CIO Matt Hougan said the administration’s tariff pause — announced this week for countries that haven’t retaliated against the U.S. — is a clear indication of its currency play. “The message is simple: the Trump team wants the dollar lower,” Hougan wrote.

Bitcoin and other cryptocurrencies rallied sharply on the news. BTC jumped past $82,000, while altcoins like Ethereum, Solana, and XRP posted double-digit gains. The move also sparked rallies across equity markets, with tech-heavy indexes like the Nasdaq surging.

Bitwise pointed to bitcoin’s historically inverse relationship with the U.S. Dollar Index (DXY). “A weaker dollar creates tailwinds for bitcoin,” Hougan noted, citing years of negative correlation between the two assets.

Beyond short-term price action, Bitwise believes a weakened dollar could accelerate a larger shift in the global financial order. “A declining dollar invites alternatives,” Hougan said. “Bitcoin and gold are poised to gain more relevance in a multipolar reserve currency environment.”

Despite recent market volatility, Bitwise sees strong macro fundamentals for bitcoin and reiterated its $200,000 year-end forecast. At the time of writing, bitcoin was trading near $82,300.