President Trump’s administration wants a lower dollar and it is optimistic for Bitcoin (BTC), the asset manager in a report on Tuesday said.
“Regarding the price push, the thing I am most certain is: the Trump administration wants a much lower dollar,” wrote Matt Hougan, director of investments in Bitwise.
After a week of market troubles, cryptocurrencies jumped on Wednesday following the announcement by President Trump of a 90-day break on the prices for countries that have not retaliated against the United States.
A lower dollar has important implications for Bitcoin.
Bitwise notes that over the past five years, cryptocurrency has had a negative correlation with the US dollar index (DXY). When the dollar falls, the bitcoin increases and said Bitwise that it expects this relationship to continue in the short term.
The longer -term implications of a lower dollar are even more positive, depending on the report. “An upheaval in the macro-world system creates an opportunity for new reserve assets to emerge,” wrote Hougan.
The remoteness of the US dollar because the unique reserve currency to a more fractured system could give difficult money, such as Bitcoin and Gold, a more important role to play on the macro global scene, added the report.
Bitwise said he was stated at his goal of end -of -year Bitcoin price of $ 200,000.
The largest cryptocurrency in the world was negotiated about $ 82,300 at the time of publication.
Find out more: Bitcoin resilience during the price chaos impresses the Wall Street Bernstein firm
