As global tensions escalate with the implementation of hefty tariffs and growing trade conflicts between major economies, one prominent voice in the cryptocurrency investment sector has made a bold prediction about the future of finance. Matt Hougan, Chief Investment Officer (CIO) of Bitwise Asset Management, a crypto asset manager with over $12 billion under management, recently declared Bitcoin as the ultimate winner in what appears to be developing into a global currency war.
JUST IN: $12 billion asset manager Bitwise CIO said “I think the answer to who wins in this currency war is #Bitcoin“
BTC is “set up to rally significantly” 🚀 pic.twitter.com/g6Ouu4wAbS
— Bitcoin Magazine (@BitcoinMagazine) April 8, 2025
“Bitcoin Will Be the Winner”
“There’s a lot of uncertainty in the global markets right now, especially with the U.S.-China trade tensions escalating and these new tariffs coming into play,” Hougan stated in a recent interview with Bloomberg. “I think we’re seeing a real battle over currency dominance, with nations trying to protect their fiat systems. But when you look at the bigger picture, I think the answer to who wins in this currency war is Bitcoin.”
This prediction comes at a critical juncture as the United States recently imposed a staggering 104% tariff on Chinese imports, sending shockwaves through global markets and intensifying already strained economic relations between the world’s two largest economies.
Why Bitcoin Stands to Benefit
According to Hougan, Bitcoin’s fundamental characteristics position it uniquely to thrive amid international monetary tensions. “In times of currency devaluation or trade conflicts, like what we’re seeing now with the U.S. imposing 104% tariffs on China, investors start looking for a hedge,” he emphasized.
The Bitwise CIO highlighted three key attributes that make Bitcoin particularly attractive in this environment:
- Decentralization: Unlike traditional currencies, Bitcoin is not tied to any government or central bank
- Borderless Nature: It can be transferred globally without interference from national policies
- Fixed Supply: With a capped supply of 21 million coins, Bitcoin offers protection against the inflation that often results from currency wars
“We’ve seen this historically: every time there’s a major drawdown or economic uncertainty, Bitcoin tends to rebound stronger. In fact, I’d say BTC is set up to rally significantly in the coming months as these tensions play out,” Hougan added.
Institutional Backing Growing
Bitwise is not just any market commentator. The San Francisco-based firm, founded in 2017, has established itself as a pioneer in cryptocurrency investments, specializing in index-based crypto funds that provide regulated access to digital assets for institutional investors, family offices, and wealthy individuals.
The firm is one of 11 issuers of spot Bitcoin ETFs, with its fund (BITB) currently managing approximately $2.97 billion in net assets. This substantial market presence gives significant weight to Hougan’s assessment.
“With institutional adoption growing, our own research at Bitwise shows more ETFs and funds entering the space, I think the stage is set for a significant rally,” Hougan noted, suggesting that Bitcoin’s price could reach new highs once the current trade tensions subside.
Current Market Context
Despite Hougan’s optimistic outlook, Bitcoin is currently trading approximately 30% below its all-time high. However, put in perspective, the cryptocurrency has still delivered impressive returns of over 300% in the past two years, according to market data.
Bitcoin’s current price movements reflect the immediate impact of geopolitical tensions, with reports indicating a 5-7% drop following the announcement of new U.S. tariffs on China. As of April 9, 2025, Bitcoin is trading near $76,000, having faced significant selling pressure amid broader market uncertainty.
A Historical Pattern of Resilience
Bitwise’s bullish stance on Bitcoin is built on historical observations of the cryptocurrency’s performance during periods of economic turmoil. The digital asset has demonstrated a pattern of rebounding strongly after periods of significant drawdowns, typically recovering within six to seven months and often achieving new heights.
This resilience is becoming increasingly attractive to investors seeking alternatives to traditional financial systems that appear increasingly fragile amid escalating international tensions.
Beyond the U.S.-China Conflict
While the U.S.-China trade dispute dominates headlines, Bitwise’s assessment suggests that Bitcoin’s potential victory extends beyond this specific conflict. The San Francisco-based asset manager views the situation as part of a broader global struggle for currency dominance, where Bitcoin’s apolitical, scarce, and trustworthy nature offers a compelling alternative.
As one analyst from Bitcoin Schweiz News described it: “The tone is getting sharper in the world’s financial system,” and Bitcoin stands as an apolitical option in an increasingly polarized monetary landscape.
Also Read: China to Impose Additional 34% Tariff on US Goods: Escalating Trade War Threatens Global Economy
Looking Forward
As traditional currencies face challenges from tariffs, devaluations, and geopolitical tensions, Bitcoin’s position as a neutral, globally accessible store of value continues to strengthen. With institutional adoption accelerating and recognition of Bitcoin’s unique properties growing among traditional financial players, the cryptocurrency appears well-positioned to benefit from the ongoing currency conflicts.
When a multi-billion dollar asset manager like Bitwise makes such a definitive statement about Bitcoin’s prospects, it signals a potential inflection point in the institutional perception of cryptocurrencies—potentially heralding a new phase of adoption and price appreciation for the world’s leading digital asset.
