The expectation that President Trump’s administration will pursue a weaker dollar policy has led to notable developments in the cryptocurrency market. This report suggests that such a policy shift could positively affect digital assets.
Dollar Weakening
Market activity has surged, particularly following the halt of tariffs. It is anticipated that the U.S. administration will signal changes in its international trade policies. These developments have created uncertainty in global monetary policy, prompting investors to seek alternative assets.
A report by Bitwise emphasizes that there has been an inverse relationship between Bitcoin $84,833 and the U.S. Dollar Index over the past five years. It notes that when the dollar weakens, the value of cryptocurrencies tends to increase. This situation has fostered expectations that similar trends may continue in the short term.
Bitcoin and Global Reserve Assets
In the long term, a move away from the dollar’s status as a reserve currency could pave the way for new alternative assets in the global economic system. The report indicates that cryptocurrencies and hard assets like gold may become more prominent among reserve assets.
Matt Hougan, sharing his views on tariff applications, stated, “I am sure the Trump administration wants a significantly weaker dollar.”
Bitwise has projected that Bitcoin could reach $200,000 by the end of the year based on current market data. This assertion serves as a reference for evaluating the present market situation. The report indicates that changes in the global macroeconomic order may elevate the significance of alternative reserve assets, leading investors to diversify their portfolios in light of these developments.
The news highlights the need to reassess the relationship between global monetary policy and digital assets. Market observers express that, in the event of a dollar weakening, digital assets could play a more prominent role in the long run.