Bitcoin has had a rough couple of months. Over the last 60 days, its price has dropped by more than 23%, continuing a longer market downturn. Many believe this drop is tied to recent trade decisions by the U.S. government, including new tariffs announced in February, March, and April.
But not everyone sees this as bad news.
Why This Dip Could Actually Be Good in the Long Run
Well-known crypto analyst Miles Deutscher recently shared his thoughts on X (formerly Twitter). He believes that even though things might look shaky right now, Bitcoin could be heading toward a new all-time high (ATH) in the next year or so.
According to him, the current economic decisions—especially the ones coming from former President Donald Trump’s administration—may cause short-term pain but could help Bitcoin in the long run. These changes are likely to weaken the U.S. dollar and reduce interest rates, both of which usually push crypto prices higher.
What’s Happening With the Economy?
Here’s the basic idea:
- New tariffs make U.S. products more expensive and could lead other countries to buy fewer U.S. Treasury bonds.
- This means the U.S. will have to rely more on local buyers, which tightens up the money supply (aka liquidity).
- Since Bitcoin reacts quickly to changes in liquidity, prices could drop further before things turn around.
But it’s not all doom and gloom. We’ve seen this kind of setup before.
For example, in March 2020, during the early days of COVID-19, Bitcoin crashed to around $5,000, only to skyrocket to $69,000 by late 2021 once the U.S. government began pumping money into the economy.
What’s Next?
Deutscher predicts that Bitcoin could hit its lowest point as the market fully digests fears of a recession. But once a recession is officially announced—something that’s often followed by government action—things could start looking up again.
He expects the Federal Reserve to cut interest rates at that point and, eventually, restart money-printing programs like quantitative easing (QE). While that major shift might not happen until 2026, smaller boosts from programs like the Bank Term Funding Program and repo agreements could start helping Bitcoin sooner.
Altcoins Could Follow Bitcoin’s Lead
As Bitcoin recovers, solid altcoins (those with real-world use or strong backing) are expected to follow. On the other hand, weaker tokens with little purpose may fade away. If Bitcoin hits a new peak, this could also trigger the next “altseason”, when smaller cryptocurrencies see major price gains.
So When Might This Happen?
Deutscher admits that the next few weeks or months could remain unpredictable due to market and policy shifts. But overall, he believes Bitcoin could reach a new all-time high between Q3 2025 and Q1 2026.
Quick Market Snapshot
Right now, Bitcoin is trading at $83,313, up 0.90% from last week. But daily trading activity is down by nearly 69%, sitting at around $14.25 billion—a sign that traders are still being cautious.
