In the wake of recent U.S. tariff impositions spearheaded by President Donald Trump, the Bitcoin market has seen a significant dip. However, despite this turbulence, industry insiders remain confident about the cryptocurrency’s potential. Crypto asset management firm, Bitwise, continues to stand by its year-end Bitcoin price target of $200,000, according to Ryan Rasmussen, the Head of Research at the company.
Rasmussen expressed his belief that the market’s current fluctuations will eventually subside, paving the way for an upward trajectory. He told Decrypt on Thursday, “Once the market settles from this ‘Liberation Day’ chaos, we’ll finally start seeing the market pullback upwards. We like to use the analogy that [good news] gets stored as dry powder for when that volatility and uncertainty ultimately subsides.”
Following the announcement of Trump’s “reciprocal” tariffs, Bitcoin saw a 5.5% decrease, bringing its trading value down to roughly $82,000 according to CoinGecko. This news also caused a stir on Wall Street, leading to a decline in equities due to growth concerns and fears of retaliatory trade measures. Specifically, tech-focused Nasdaq experienced a steep plunge of over 5%.
Interestingly, Bitcoin’s performance has directly correlated with that of the tech sector over recent years. This trend has become increasingly apparent against the backdrop of gold’s record-breaking climb. However, Rasmussen posits that Bitcoin’s outperformance of the precious metal, as well as the S&P 500 and Nasdaq since November 5, is a crucial point to consider.
According to Rasmussen, the market should already be at a staggering 150k, were it not for the looming fear of tariffs. His optimism is further bolstered by the potential rollback of some tariffs, and the Federal Reserve’s projected interest rate cuts for the year.
Geoff Kendrick, Standard Chartered’s Global Head of Digital Assets Research, echoed Rasmussen’s sentiments by reiterating his $200,000 year-end price target for Bitcoin in a recent research note.
Cosmo Jiang, a general partner at Pantera, a crypto asset management firm, expressed his view that Trump’s tariffs are more of a negotiation tactic than a long-term imposition. He anticipates a swift market recovery once the Trump administration achieves satisfactory concessions from other nations.
Despite the current bearish trend, Bitcoin’s standing as a store of value has positioned it favorably compared to other digital assets. Jess Houlgrave, CEO of the crypto user interface company Reown, formerly known as WalletConnect, shared this viewpoint. She cautioned, however, that digital assets without a strong market-type fit may face volatility or downturns as capital seeks safer havens.
A more skeptical voice comes from Arthur Hayes, co-founder and former CEO of BitMEX, a crypto exchange. Hayes opines that for Bitcoin to maintain any positive momentum, it needs to stay above the $76,500 mark until Americans pay their taxes on April 15.
As the crypto market navigates this challenging period, it is clear that industry insiders hold varying views. However, the collective belief in Bitcoin’s potential remains strong, offering hope for a promising future.
