In the past few weeks, U.S. President Donald Trump’s tariffs have impacted Bitcoin’s price; however, several analysts remain optimistic despite Thursday’s market downturn, and anticipate that the asset will reach new peaks this year.
Bitwise’s target of $200,000 for Bitcoin by the end of the year is still on the table, according to Ryan Rasmussen, Head of Research at the crypto asset management firm, who spoke to Decrypt on Thursday.
“Once the market recovers from this ‘Liberation Day’ turmoil, we can expect to see prices inch upwards,” he noted. “We often liken [good news] to being stored as dry powder for when the volatility and uncertainty finally fade.”
On Thursday, Bitcoin’s price dipped by 5.5% as traders reacted to Trump’s “reciprocal” tariffs, trading at around $82,000, as per data from CoinGecko. Meanwhile, on Wall Street, stocks fell due to concerns about growth and potential trade retaliation, with the tech-heavy Nasdaq dropping over 5%.
The price movements of Bitcoin, the largest cryptocurrency by market cap, have closely tracked the tech sector in recent years. This trend has become even more pronounced as gold has soared to record highs, yet Rasmussen cautioned that it’s essential to consider that Bitcoin has outperformed gold, the S&P 500, and the Nasdaq since November 5.
“In recent months, we’ve witnessed an influx of positive developments,” he stated, highlighting the Biden administration’s establishment of a Bitcoin reserve, regulatory changes, and the involvement of sovereign wealth funds. “Without the looming fear of tariffs, this market should already be approaching $150,000.”
Rasmussen believes that some tariffs could be lifted, and that the Federal Reserve remains likely to reduce interest rates later this year, even as the central bank waits to observe any changes in trade and immigration policies.
Geoff Kendrick, Standard Chartered’s Global Head of Digital Assets Research, reaffirmed his $200,000 Bitcoin price target in a recent research update, stating that analysts at the British multinational continue to view the asset as a strong performer.
Cosmo Jiang, a general partner at Pantera, a crypto asset management firm, indicated to Decrypt that Trump’s tariffs serve as a negotiating strategy, which may result in a swift market recovery if the president finds satisfaction with other nations’ reactions.
“Just as [uncertainty] was artificially introduced, it can also be withdrawn once the Trump administration feels it has secured concessions,” he elaborated. “Digital assets, leading the way among growth assets, were the first to retreat and may also be the first to recover.”
While Bitcoin may be losing some dominance to gold, its positioning as a store of value places it in a more advantageous position compared to many other digital currencies, according to Jess Houlgrave, CEO of the crypto interface company Reown, formerly WalletConnect.
“Digital assets that have not yet carved out a solid market fit could face volatility or a downturn as capital gravitates toward safer havens,” she suggested, adding, “Established projects with genuine real-world use and utility, like those in DeFi, may continue to flourish.”
Among the skeptics, Arthur Hayes, co-founder and former CEO of the crypto exchange BitMEX, noted on Wednesday via X, formerly known as Twitter, that Bitcoin must hold above $76,500 until the April 15 tax deadline for Americans to sustain any upward momentum.
Just a week prior, he had predicted that Bitcoin would reach $110,000 first, citing the Federal Reserve’s perspective on tariff-related inflation as temporary and a slowdown in the central bank’s balance sheet reduction.
Edited by James Rubin
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