Why is there 'optimism' for Bitcoin despite tariff war concerns?

Source

Son Min

Summary

Despite growing anxiety in the virtual asset market due to the tariff war between the US and China, there is analysis that Bitcoin is being highlighted as a hedge tool.
Matt Hougan, Chief Investment Officer of Bitwise, stated that Bitcoin will reach $200,000 by the end of this year, noting its freedom from national policies.
Charles Hoskinson predicted that if interest rate cuts continue, there will be an increase in Bitcoin fund inflows, and also foresaw the possibility of reaching $250,000.

Cryptocurrency A to Z

Even as fear index soars

Industry maintains bullish outlook

"If uncertainty grows

Bitcoin becomes a hedge tool

It will reach $200,000 within the year"

As the tariff war between the US and China intensifies, anxiety is spreading in the virtual asset market. However, some are raising optimism.

According to the industry on the 13th, Bitcoin fell to the $70,000 range as of the 10th, when US President Donald Trump raised tariffs on Chinese imports to 125%. Major altcoins (cryptocurrencies other than Bitcoin) such as Ethereum and XRP (formerly Ripple) also fell, reflecting the market's fear of tariff uncertainty. The 'Crypto Fear & Greed Index' recorded 25 points, re-entering the 'extreme fear' stage.

However, analysts still maintain a bullish outlook for Bitcoin. This is due to expectations that the impact of the tariff war will ultimately be positive for Bitcoin. Matt Hougan, Chief Investment Officer (CIO) of Bitwise, claimed, "Bitcoin will reach $200,000 by the end of this year," and "Bitcoin, free from national policies, will emerge as a new alternative."

US investment bank Bernstein analyzed, "In the past, Bitcoin plummeted in situations of increasing market uncertainty, but now it has shown a slight decline," and "This means that Bitcoin has established itself as a risk hedge tool in the market." During the COVID-19 pandemic and US interest rate hikes, Bitcoin prices fell 50-70%, but now it maintains a 26% decline, indicating that demand for Bitcoin as a hedge tool has strengthened compared to the past.

The Trump administration's interest rate cut stance is also a factor predicting Bitcoin's rise. President Trump has continuously urged the US Federal Reserve (Fed) to cut rates. The US Consumer Price Index (CPI) for March recorded 2.4%, below Wall Street's estimate of 2.6%, raising expectations for a rate cut.

Charles Hoskinson, founder of Cardano, said in an interview with CNBC, "If the market adapts to the tariffs, the Fed will lower rates," and "If rates go down, the funds are likely to flow into Bitcoin." He further predicted, "Bitcoin could reach $250,000 by the end of this year."

Son Min, Bloomingbit reporter sonmin@bloomingbit.io

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