Bearish Trend Won’t Last: Analyst Sees Bitcoin Hitting New Highs
Bitcoin has recently faced a significant downturn, losing over 23% of its value in just two months, largely due to the economic impact of a series of new tariffs imposed by the United States in February, March, and April.
These trade policies have created turbulence in the crypto market, pushing Bitcoin prices downward as investors react to the uncertain financial climate.
However, some analysts, including crypto expert Miles Deutscher, see a potential silver lining amid the chaos. Deutscher believes that despite the current bearish sentiment, Bitcoin could ultimately benefit from the long-term effects of these economic shifts. He explains that the recent policy changes by the Trump administration are causing short-term pain but may set the stage for a future rally.
The reasoning behind this optimistic outlook is rooted in how these tariffs might influence the economy. By potentially weakening the dollar and reducing interest rates, the economic environment could eventually favor Bitcoin and other digital assets. Nevertheless, the immediate consequence of the tariffs has been a squeeze on liquidity, as fewer international buyers are purchasing US Treasury bills, forcing reliance on domestic investment. This liquidity tightening has driven investors toward safer assets, putting more pressure on Bitcoin’s price.
Despite these challenges, Deutscher predicts that the market will eventually reach a bottom as recession fears are priced in. Once the economy stabilizes, likely following official recession declarations, the Federal Reserve may respond with measures like rate cuts and quantitative easing (QE). Although QE might not arrive until 2026, other economic strategies, including repurchase agreements and liquidity programs, could still bolster Bitcoin’s position.
As these economic interventions unfold, Bitcoin is expected to recover, with high-quality altcoins potentially following suit, while less valuable tokens lose relevance. Once Bitcoin climbs toward a peak price, the much-anticipated altseason could take off, driven by renewed market confidence.
Deutscher admits that predicting short-term price movements is tricky, but he is optimistic that Bitcoin could reach a new all-time high between Q3 2025 and Q1 2026. He sees the current downturn as a temporary phase in a longer cycle that will eventually favor long-term investors.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
