Trump Praises Crypto for Easing Dollar Burden – Ironically, That Could Hurt Bitcoin
President Donald Trump declared crypto “takes a variety of strain off the greenback” throughout a speech at Miami’s America Business Forum on November 5, 2025, positioning the U.S. as “the bitcoin superpower” and “crypto capital of the world.”
Speaking to 1000’s of attendees, Trump credited his government orders with ending what he referred to as the federal authorities’s “conflict on crypto,” contrasting his strategy with the Biden administration’s enforcement-heavy stance, which he stated left trade figures “below indictment.”
Beyond regulatory reduction, Trump framed crypto adoption as economically strategic, suggesting digital property may alleviate pressure on the greenback whereas positioning America as the worldwide chief in each crypto and synthetic intelligence, the place he claimed the U.S. leads China “by lots.”
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President Trump says crypto “takes a variety of strain off the greenback. It does a variety of good issues.”
“We’re making the US the #Bitcoin superpower, the crypto capital of the world”. pic.twitter.com/31xK1qCnys
— Bitcoin Magazine (@BitcoinMagazine) November 5, 2025
The Dollar-Bitcoin Paradox
Trump’s endorsement displays rising momentum behind stablecoins and strategic Bitcoin reserves in Washington, but financial fundamentals counsel an inherent rigidity.
Bitcoin has traditionally exhibited an inverse correlation of roughly -0.7 with the U.S. Dollar Index (DXY), that means a strengthened greenback usually suppresses Bitcoin costs whereas greenback weak spot tends to spice up them.
During the Federal Reserve’s 2022 tightening cycle, the DXY surged to 114, whereas Bitcoin crashed from $47,000 to beneath $17,000, a textbook demonstration of this inverse relationship.
Conversely, the 2020-21 easing interval noticed greenback weak spot coincide with Bitcoin’s rally to then-record highs round $64,000.
Market observers be aware Bitcoin behaves extra like a high-beta danger asset than a protected haven, rising with free monetary situations and falling throughout liquidity withdrawals.
If cryptocurrency genuinely reduces strain on the greenback by providing different transaction and store-of-value mechanisms, a stronger greenback may paradoxically undermine Bitcoin’s attraction.
The crypto usually attracts capital when buyers search options to weakening fiat currencies, not when conventional cash strengthens.
Academic research utilizing wavelet evaluation confirms Bitcoin’s out-of-phase dynamics with the greenback, although the connection stays “extra sporadic” than with typical property.
Strategic Reserve and Stablecoin Push
Senator Cynthia Lummis not too long ago referred to as a Strategic Bitcoin Reserve “the only path“ to meaningfully offset America’s $35 trillion debt burden, praising the Trump administration for embracing the idea.
She revealed Treasury Secretary Scott Bessent and White House workers are exploring constructions past merely revaluing gold certificates, although financing particulars stay unclear.
— Cryptonews.com (@cryptonews) November 5, 2025
The administration’s March reality sheet indicated the reserve would begin with over 130,000 BTC already held via prison forfeitures, price roughly $34 billion, with out requiring new taxpayer spending.
Similarly, Eric Trump recently told the New York Post that stablecoins may “save the U.S. greenback” by channeling “trillions from around the globe” into U.S. markets via World Liberty Financial’s USD1 token.
However, critics, together with Representative Maxine Waters and Senator Elizabeth Warren, have warned of what they see as conflicts of curiosity, noting the GENIUS Act stablecoin framework signed in July accommodates no provisions stopping the president or relations from profiting.
Market Dynamics Reveal Dollar-Bitcoin Tension in Real Time
Recent market motion demonstrates the paradox between the greenback and Bitcoin.
When surprisingly strong U.S. jobs data emerged in late September, preliminary claims dropped to 218,000, and Q2 GDP was revised upward to three.8%. The U.S. Dollar Index surged to a three-week high whereas Bitcoin tumbled beneath $111,000.
The sample repeated on Thursday when better-than-expected providers exercise and payroll figures lifted the greenback to a five-month peak, capping Bitcoin’s restoration even because it climbed again above $103,000.
Strong jobs report sends greenback hovering whereas Bitcoin falls beneath $111,000 as Fed charge lower odds decline to 85.5%.#Bitcoin #Dollarhttps://t.co/izW8AEttYE
— Cryptonews.com (@cryptonews) September 25, 2025
Current buying and selling displays this greenback dominance. Despite Bitcoin’s Thursday bounce, traders described a “buy the dip, sell the rip” bias, with speedy profit-taking, because the higher-for-longer charge narrative and agency greenback restrict follow-through endured.
Rate expectations for a December Fed lower slipped to 60% from 70% earlier within the week, preserving yields agency and the greenback elevated.
Notably, within the early hours of right this moment, Turkey’s lira plunged to a report 42.1 per greenback on November 6, a 97% depreciation since 2010, as persistent inflation drives capital towards the US greenback.
Alok Jain described this saying, “they’ll hold including paper until folks hold contemplating it of any worth.”
They will hold including paper until folks hold contemplating it of any worth https://t.co/5vJwjnnNMz
— Alok Jain
(@WeekendInvestng) November 6, 2025
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