Over the past two months, Bitcoin prices have plummeted more than 23% due to long-term market corrections. The majority of this decline comes from a series of new US tariffs announced in February, March and more recently in April.
Despite the short-term bearish effects of this macroeconomic development on the crypto market, popular crypto analyst Miles Deutscher theorizes that BTC can effectively benefit from the long-term impact of these policy decisions.
Short-term chaos, long-term clarity: Bitcoin tilted for new ATH
In a recent X post, Deutscher states that despite current market uncertainty, Bitcoin is the best course of all time. Analysts explain that recent changes in trade and economic policy, managed by US President Donald Trump, may have had negative market effects, but the subsequent series of events from these decisions can prove bullish.
First, Deutscher says recent economic decisions by the US government show intentions to induce short-term pain that could weaken dollars and interest rates that are beneficial to Bitcoin and other crypto assets.
But the new import duties will discourage the purchase of the US Treasury bill, which forces reliance on domestic buyers, which will cause liquidity tightening. Because Bitcoin is liquid-sensitive, the global liquidity contraction causes further price drops as investors move their capital into safer assets.
Ultimately, the crypto market is expected to bottom out pricing in the fear of a recession. By the time an official recession was announced, the market was stable and could predict the economic response of the Federal Reserve.
At this junction, US apex banks could announce rate cuts that would remove the path of quantitative easing (QE). However, this QE may not occur until 2026, but Bitcoin will experience increased dollar liquidity from other economic tools, including repurchase agreements, bank-term financing programs and Treasury bill purchases.
Following this development, Bitcoin is expected to embark on an upward trajectory. “Best Quality” altcoins potentially track market leaders, but other tokens with little or no utility reduction. When Bitcoin approaches or reaches peak prices, AltSeason begins.
Deutscher explains that predicting crypto markets and US policies in the short term 1-12 weeks is currently difficult. However, his predictions could put Bitcoin in the next few months in a new all-time high position between the third quarter 2025 and the first quarter 2026.
Overview of the BTC market
At the time of writing, Bitcoin was trading at $83,313 after an increase of 0.90% last week. However, daily trading volume of assets fell 68.68%, valued at $142.5 billion.
Special images from conversations, TradingView charts
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