Bitwise Believes Trade War Will Push Bitcoin to Receive Reserve Currency Status
Bitwise CIO Matt Hougan commented that after this tariff issue ends, bitcoin will ultimately be favored in the aftermath. Hougan believes that the endgame of the tariff issue will include a dollar devaluation, which would precede a new reserve system with bitcoin and gold at the forefront.
The current trade war and the tariff scheme recently paused by the Trump administration have analysts examining the new trade order that will result in the aftermath of these measures. Matt Hougan, Chief Investment Officer at Bitwise, believes that bitcoin, due to its specific traits, will be favored after the normalization of this situation.
Read more: Bitcoin Blazes Past $82K as Wall Street Roars on Trump’s 90-Day Tariff Timeout
For Hougan, there is only one thing sure after the enactment of these tariffs: the Trump administration wants to fix a series of trade imbalances affecting the competitiveness of U.S. products in international countries. For this, Trump is considering a single solution: a weaker dollar, according to Steve Miran, chairman of the White House’s Council of Economic Advisers.
In the short term, Hougan claims that this will be good for bitcoin, given that a weaker dollar directly implies a stronger bitcoin, having an inverse relation. In the longer term, while devaluing the dollar might have a good effect on making U.S. products more exportable, it will also weaken the dollar’s role as the sole reserve currency.
Hougan stated:
We will move from a single reserve currency (the dollar) to a more fractured reserve system, with hard money like bitcoin and gold playing a bigger role than it does today.
Hougan assessed that bitcoin represents a currency outside any country’s control and a scarce, global, digital store of value, making the case for its adoption alongside gold.
Bitwise is still bullish about bitcoin, maintaining the same forecast for the prime cryptocurrency since January. Hougan concluded that $200K per bitcoin is a price that can still be reached this year, even with all the unknowns that can happen.