Trump wants a weak dollar policy, and this could boost Bitcoin: report
The post Trump wants a weak dollar policy, and this could boost Bitcoin: report appeared on BitcoinEthereumNews.com.
Photo by Scott Olson, Getty Images. Key Takeaways Trump’s potential presidency could weaken the dollar, benefiting Bitcoin. Bitcoin’s recent rally linked to ETFs and election expectations. Donald Trump’s pledge for a weaker US dollar if re-elected could provide tailwinds for Bitcoin and other cryptocurrencies, though analysts caution that the relationship is complex and subject to various economic factors. According to a report from Bloomberg, the former president’s dollar policy marks a departure from the traditional strong dollar stance of past administrations, potentially creating a more favorable environment for alternative assets. As Trump’s campaign has emphasized concerns about dollar strength relative to currencies like the Chinese yuan and Japanese yen, the sign market has, in turn, shown signs of responsiveness. Bitcoin has rallied significantly alongside improvements in Trump’s election odds, with some analysts attributing this partly to expectations of a weaker dollar under a potential Trump administration. The report from Bloomberg cites Fadi Aboualfa, head of research at Copper Technologies, who notes that Bitcoin and crypto investors have benefited from two key drivers in 2024: the launch of spot Bitcoin ETFs in January and the possibility of a Trump win. However, he emphasized that the potential boost to Bitcoin stems more from broader economic implications than from Trump’s pro-crypto rhetoric. “We have a big currency problem,” Trump said at the Republican National Convention, claiming that the relative weakness of Chinese and Japanese currencies has given those countries an “advantage.” Trump’s VP pick, JD Vance holds the same stance and has campaigned for dollar devaluation in the Senate. Weak dollar, strong Bitcoin The relationship between dollar weakness and Bitcoin’s performance is rooted in the cryptocurrency’s perceived role as a store of value and hedge against inflation. Shaun Osborne, chief currency strategist at Scotiabank, explained that Bitcoin, as an “alternative asset” might strengthen…
Filed under: News - @ July 23, 2024 11:12 pm