In the previous two months, Bitcoin’s price has plummeted by over 23% as part of a prolonged market recalibration. Significant portions of this downturn have been attributed to a series of new US tariffs introduced in February, March, and most recently, April.
Regardless of the immediate bearish consequences of this macroeconomic shift on the crypto landscape, well-known crypto analyst Miles Deutscher speculates that BTC could greatly benefit from the long-term repercussions of these regulatory measures.
Short-Term Turbulence, Long-Term Vision: Bitcoin Predicted For New ATH
In a recent post on X, Deutscher asserts that Bitcoin is on track for a new all-time high despite ongoing market ambiguity.The analyst clarifies that while recent trade and economic policy adjustments by the administration of US President Donald Trump may be casting a negative shadow over the market, the resulting chain of events from these choices can be bullish.
To start, Deutscher points out that the latest economic decisions by the US administration indicate a desire to induce short-term hardship that could weaken the dollar and interest rates, which should favor Bitcoin and other cryptocurrencies.
Nonetheless, the newly implemented import tariffs are likely to deter the acquisition of US Treasury Bills, leading to a reliance on domestic buyers, triggering liquidity constraints. Since Bitcoin is sensitive to liquidity fluctuations, the contraction in global liquidity is likely to lead to further price declines as investors shift their assets to safer options.
Ultimately, the crypto market is expected to hit a low as it factors in recession apprehensions. By the time an official recession is declared, the market could stabilize, anticipating an economic response from the Federal Reserve.
At this point, the US Apex Bank is anticipated to announce a reduction in interest rates, paving the path for quantitative easing (QE). However, although this QE may not materialize until 2026, Bitcoin will see a boost in dollar liquidity from alternative economic measures such as repurchase agreements, Bank Term Funding Program, and Treasury bill acquisitions.
Following these developments, Bitcoin is projected to initiate an upward trend. The “top-tier” altcoins are expected to potentially follow the market leader, while other tokens with minimal to no utility may shrink. As Bitcoin approaches or reaches a peak value, the altseason will commence.
Deutscher states it is currently challenging to forecast the crypto market and US policies in the short run, i.e. 1-12 weeks. Nevertheless, his predictions are likely to unfold in the ensuing months, positioning Bitcoin strongly for a new all-time high between Q3 2025 and Q1 2026.
BTC Market Overview
As of this writing, Bitcoin was trading at $83,313, reflecting a 0.90% increase over the past week. However, the asset’s daily trading volume has decreased by 68.68%, now standing at $14.25 billion.
Featured image from The Conversation, chart from Tradingview
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