US Macro Setup To Favour New Bitcoin ATH In The Long Run - Analyst

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure In the last two months, Bitcoin price has plunged by over 23% in a prolonged market correction. Significant portions of this decline have been attributed to a series of new US tariffs announced in February, March, and most recently April

Despite the short-term bearish effects of this macroeconomic development on the crypto market, popular crypto analyst Miles Deutscher theorizes that BTC could substantially benefit from the long-term effects of these policy decisions.

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In a recent X post, Deutscher states that Bitcoin is on course for a new all-time high despite current market uncertainty The analyst explains that while recent trade and economic policy changes by the administration of US President Donald Trump may be exerting a negative market effect, the ensuing sequence of events from these decisions can prove bullish

Firstly, Deutscher states that recent economic decisions by the US government show intentions to induce short-term pain that could weaken the dollar and interest rates which should be beneficial for Bitcoin and other crypto assets

However, the new import tariffs are likely going to discourage the purchase of US Treasury Bills forcing a reliance on domestic buyers which triggers liquidity tightening. As Bitcoin is sensitive to liquidity, the contraction of global liquidity will cause further price falls as investors move their funds to safer assets

Eventually, the crypto market is expected to bottom out pricing in recession fears. By the time an official recession is announced, the market could be stable and anticipate an economic response by the Federal Reserve.

At this junction, the US Apex Bank is likely to announce a rate cut clearing the way for quantitative easing (QE). However, while this QE may not occur until 2026, Bitcoin will experience a dollar liquidity boost from other economic tools including repurchase agreements, Bank Term Funding Program, and Treasury bill purchases

Following this development, Bitcoin is expected to embark on an upward trajectory. The “top quality” altcoins will potentially follow the market leader while other tokens with little to no utility shrink. Once Bitcoin nears or hits a peak price, the altseason will kick in

Deutscher explains it is currently difficult to predict the crypto market and US policies in the short term i.e. 1-12 weeks. However, his forecast is likely to roll out in the coming months placing Bitcoin in a strong position for a new all-time high between Q3 2025 and Q1 2026.

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At the time of writing, Bitcoin was trading at $83,313 following a 0.90% gain in the past week. However, the asset’s daily trading volume is down by 68.68% and is valued at $14.25 billion.

BTC trading at $83,437 on the daily chart | Source: BTCUSDT chart on Tradingview.comFeatured image from The Conversation, chart from Tradingview Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.