Crypto Takes a Lot of Pressure Off the Dollar: Trump

Key Highlights

• U.S. President Donald Trump said that cryptocurrency takes a lot of pressure off the dollar
• He also repeated his vision to make the country the Bitcoin superpower, the crypto capital of the world, and the undisputed leader in artificial intelligence
• Trump’s statement comes amid a downward trend in the cryptocurrency market

On November 5, U.S. President Donald Trump made a huge statement amid ongoing economic challenges in the country, saying that the cryptocurrency “takes a lot of pressure off the dollar.”

Trump has also reaffirmed his statement that his administration is working in the direction to make “the United States the Bitcoin superpower, the crypto capital of the world, and the undisputed leader in artificial intelligence.”

USD Regains Stability after Rough Start in 2025

The US dollar is preparing for a comeback in the second half of 2025 by recovering from its worst first-half performance in five decades. Through June, the dollar had dropped 10.7% against major currencies. This drop comes after aggressive trade tariffs and fears of slowing U.S. economic growth. 

The U.S. economy is currently going through turbulence amid growing debt. Apart from this, the latest data on U.S. inflation and the unemployment rate (3% and 4.2% respectively). 

USD’s rebound started in July and gained momentum after the Federal Reserve’s policy, where the agency decided to cut the interest rate by 25 basis points, lowering the target range for the federal funds rate to 4.00% – 4.25%. 

Another major turning point that benefited USD was a truce in the U.S.-China trade war, which paused new tariffs and calmed global recession fears. Simultaneously, the U.S. economy has also shown surprising resilience, with strong corporate earnings and a robust job market outperforming other major economies.

U.S. dollar recovery also comes from political unrest in different parts of the world, including its rival countries. 

By October, the dollar had climbed to two-month highs by removing a major portion of its earlier yearly losses. However, analysts remain cautious about the durability of this rally. They point to expectations for further Federal Reserve interest rate cuts and the potential for renewed trade tensions as factors that could limit the dollar’s upward momentum in the coming months. 

Can Crypto Really Absorb Heavy Pressure from the USD? Fact Check of Trump’s Statement

The USD plays a pivotal role in the U.S. and global economy. Trump’s statement has some logic behind this. To fuel global trade and finance, the United States must supply a huge amount of dollars to other countries, a process that forces it to run large, perpetual deficits. This constant outflow of money printing gradually creates damage to the dollar’s long-term value through inflation. This also impacts the national debt. 

At some level, Bitcoin and other cryptocurrencies are a solution to this problem. These digital currencies are working as a parallel financial system. With its fixed supply of 21 million coins, Bitcoin works as “digital gold,” which offers a store of value independent of any single government’s monetary policy. 

This mechanism of Bitcoin and other cryptocurrencies helps during the sharp decline in the USD, like in early 2025. By investing in these digital currencies, investors can use them as alternatives to hedge against the weakening USD. 

By considering this, U.S. President Donald Trump has signed an executive order to stockpile seized Bitcoin into a national reserve. This allows the U.S. to regain financial influence by accumulating a scarce digital asset, rather than completely relying on printing more dollars, thereby easing the structural pressure of the global currency. 

Crypto Market Faces Catastrophic Headwinds

Just a day ago, the cryptocurrency market witnessed a massive liquidation, which forced Bitcoin to slip below $100,000 for the first time since June. Over $2.1 billion worth of crypto investment was wiped out from the cryptocurrency market. In this liquidation, Bitcoin witnessed $470 million worth of positions wiped out, while Ethereum saw $377 million worth of positions wiped out from the crypto market, according to Coinglass. 

However, the crypto market is showing resilience to this downtrend. After a sharp fall, Bitcoin has recovered significantly, currently trading at around $103,466.75 with a 2.58% surge in 24 hours.