Bitcoin’s price has taken a dive recently, dropping over 23% in the last couple of months. A lot of this is blamed on new US tariffs. But one analyst, Miles Deutscher, thinks this might actually be good news for Bitcoin in the long run.
Short-Term Pain, Long-Term Gain?
Deutscher believes Bitcoin is headed for a new all-time high, despite the current market wobble. He argues that the US government’s recent economic decisions, while causing short-term pain, could ultimately benefit Bitcoin.
Here’s his reasoning: These policies might weaken the dollar and interest rates, which is usually good for crypto. However, the tariffs could also make it harder to buy US Treasury Bills, leading to less available money and pushing investors towards safer assets (like initially causing Bitcoin to fall).
Eventually, the market should hit bottom, pricing in the fear of a recession. Once a recession is officially declared, the Federal Reserve is likely to cut interest rates and start quantitative easing (QE), though possibly not until 2026. Before then, other economic tools like repurchase agreements and Treasury bill purchases will boost dollar liquidity, giving Bitcoin a lift.
The Road to a New ATH
After this, Deutscher predicts Bitcoin will start climbing. Strong altcoins might follow, while weaker ones will likely struggle. Once Bitcoin peaks, we could see a major altcoin rally (“altseason”).
Deutscher admits it’s hard to predict the short-term (next 1-12 weeks) for both the crypto market and US policy. But his long-term forecast puts Bitcoin in a strong position for a new all-time high sometime between the third quarter of 2025 and the first quarter of 2026.
Current Market Snapshot
At the time of writing, Bitcoin was trading around $83,313, up slightly over the past week. However, trading volume is way down.
