President Trump’s administration wants a weaker dollar and that’s bullish for bitcoin (BTC), asset manager Bitwise said in a report Tuesday.

“When it comes to the tariff push, the thing i’m most certain of is this: the Trump administration wants a significantly weaker dollar,” wrote Matt Hougan, chief investment officer at Bitwise.

After a week of market turmoil cryptocurrencies surged on Wednesday following President Trump’s announcement of a 90-day pause on tariffs for countries that haven’t retaliated against the U.S..

A weaker dollar has significant implications for bitcoin.

Bitwise notes that over the last five years the cryptocurrency has had a negative correlation to the U.S. Dollar Index (DXY). When the dollar falls, bitcoin rises, and Bitwise said it expects this relationship to continue in the short term.

The longer-term implications of a weaker dollar are even more positive, the report said. “A shake-up in the global macro system creates an opportunity for new reserve assets to emerge,” Hougan wrote.

A move away from the U.S. dollar as the single reserve currency to a more fractured system could give hard money, such as bitcoin and gold, a larger role to play on the global macro stage, the report added.

Bitwise said it was sticking to its year-end bitcoin price target of $200,000.

The world’s largest cryptocurrency was trading around $82,300 at publication time.

Read more: Bitcoin’s Resilience During Tariff Chaos Impresses Wall Street Firm Bernstein

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