Bitwise CIO: As a "more decentralized reserve system" forms, the tariff storm could potentially benefit Bitcoin

PANews reported on April 9th, according to The Block, amid global trade war tensions, major world powers have initiated a tariff war, causing increased volatility in the Bitcoin and cryptocurrency markets. Last week, US President Trump announced additional broad import tariffs that sparked stock market panic and hit risk assets. Bitwise Chief Investment Officer Matt Hougan said that investors are currently facing a dilemma with high market volatility and complex information but the White House's plan is becoming clearer. Steve Miran, Chairman of the White House Economic Advisory Council pointed out that the status of the dollar as a reserve currency puts pressure on American manufacturing and distorts currency markets.

Hougan believes this implies that the dollar needs to depreciate; Trump's administration intends to significantly devalue it even if it sacrifices its unique position as a global reserve currency. He predicts short-term weakness in the dollar will boost Bitcoin strength since they often move inversely starting from 2020 and this trend may continue. Hougan stated that in long term perspective Bitcoin has more optimistic prospects. Tariffs-induced rebalancing and global de-dollarization could prompt countries to adopt new reserve currencies. Hougan thinks during transition towards "a more decentralized reserve system", there will be increasing focus worldwide on "hard currencies" like Bitcoin and gold.