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.
Alex is Editor-in-Chief of Coindoo and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
