The Analysis Company said, "Trump wants a weak Dollar," predicting what will happen to Bitcoin!

According to Bitwise's new report, the Trump administration's preference for a weaker US dollar could be significant support for Bitcoin (BTC).

Matt Hougan, Chief Investment Officer of Bitwise, stated in a report he published, "When it comes to tariff pressure, the one thing I am most certain of is this: the Trump administration wants a significantly weaker dollar."

Comments came after a turbulent week in the financial markets where cryptocurrencies showed a sharp rise. The recovery followed President Trump's announcement that tariffs on countries that do not retaliate against the U.S. would be suspended for 90 days, and this move eased investors' tensions.

Bitwise highlighted the long-standing inverse relationship between Bitcoin and the US Dollar Index (DXY), indicating that BTC has shown a negative correlation with the dollar over the past five years. The firm stated, "When the dollar falls, Bitcoin rises," and suggested that this trend will continue in the near term.

However, Bitwise sees even broader effects beyond short-term market movements. Hougan stated, "A shock in the global macro system creates an opportunity for new reserve assets to emerge." The report suggests that moving away from the US dollar as a global reserve currency could pave the way for assets like Bitcoin and gold to take on larger roles on the world stage.

Despite the recent fluctuations in the market, Bitwise has maintained its year-end price target of $200,000 by confirming its bullish stance on Bitcoin.