Trump’s Tariff Pause Could Spark Bitcoin Price Surge, Says Bitwise CIO

US President Donald Trump has stopped planned reciprocal tariff increases for 90 days. Financial markets showed signs of recovering after a move that brought a sense of calm to the markets. The announcement also resulted in a rebound of Bitcoin, which had retreated to $74,000 with the latest round of tariff concerns.

A temporary reprieve from trade tensions that had rattled global markets is the pause in those tariff hikes. That announcement helped alleviate worries that economic slowdowns will take a further toll. The games also provided traders time to reconsider their strategies in the face of modifications to international trade policies.

Bitwise CIO Predicts Bitcoin Strength Amid Weaker Dollar

Matt Hougan, Chief Investment Officer at Bitwise Asset Management, believes that the tariff decision could support a rise in Bitcoin’s price in both the short and long term. In a letter to investors, Hougan pointed to a recent statement from Steve Miran, Chairman of the White House Council of Economic Advisors, who said the U.S. dollar’s reserve status has created trade deficits and weakened domestic manufacturing.

Hougan noted that “Trump may be open to reducing the dollar’s dominance” and this could shift global demand toward other forms of value storage. As the dollar weakens, Bitcoin, which tends to move in the opposite direction of the U.S. Dollar Index (DXY), could gain traction among investors and institutions.

Bitcoin as an Alternative Reserve Asset

Hougan further explained that a weakening dollar could open the door for a more decentralized global reserve system. In such a scenario, countries and financial institutions may seek assets not tied to any single government. Gold and Bitcoin are seen as potential alternatives for settlement and reserve purposes.

Hougan wrote that “Bitcoin is well-positioned to serve as a new form of hard money” in future global trade. This view aligns with earlier comments by BlackRock CEO Larry Fink, who noted in a stakeholder letter that Bitcoin could challenge the dollar’s leading role in international finance. Fink described the digital asset as a serious candidate for global relevance.

Bitcoin Price Trend Still Under Watch

Veteran trader Peter Brandt added to the current market discussion by sharing a chart pattern analysis. On his X account, Brandt said the recent dip in Bitcoin is a retest of an inverse head and shoulders pattern completed in late 2024. He stated that this pattern often signals upward movement, although he expressed caution due to repeated violations of the trend line since 2022.

Brandt noted there was “only one thing” that raised doubt about the next move, pointing to a breach of the parabolic trend. Despite not offering a direct price forecast, his past predictions have held weight in the crypto space, especially after correctly calling the all-time high in January when Bitcoin crossed $109,000.

The market continues to monitor both macroeconomic developments and technical signals to determine Bitcoin’s next direction.