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US President Trump: Bitcoin removes pressure from USD
🧠 Detail about Bitcoin Moves by US President:
1. Trump’s U-turn on Bitcoin:
- President Trump has officially embraced Bitcoin. He claims it can help ease pressure on the US dollar and considers it a strategic asset for US leadership globally.
- Earlier this year (March 6, 2025), he signed an executive order mandating the creation of a Bitcoin Strategic National Reserve, funded by confiscated Bitcoin. The goal: to keep the US at the forefront of digital asset innovation.
2. Price Reaction:
- On June 29, 2025, Bitcoin surpassed $108,000, reaching intraday highs near $108,774, its best performance since March.
- Traders attributed the rally to three main factors:
- Institutional inflows: large corporations and investment funds buying Bitcoin.
- Trump’s comments reinforce the idea that economic growth makes Bitcoin and gold more attractive amid growing debt concerns.
- ETF inflows: More Bitcoin funds purchased by traditional financial investors.
3. Global Repercussion:
- Trump’s call to establish a Bitcoin reserve in the US has prompted some states, such as Arizona, New Hampshire, and Texas, to implement their own reserve plans.
- Internationally, central banks in Asia and Europe are closely watching the situation. Some fear it could destabilize or weaken their own monetary systems.
4. Concerns and Criticism:
- Critics warn about Bitcoin’s volatility, meaning its price rises and falls rapidly. They claim that the accumulation of government and corporate reserves in cryptocurrencies could lead to severe declines.
- Economist Peter Schiff has stated that if Trump pushes Bitcoin too hard, it could “cause a collapse of the US dollar.” Senator Elizabeth Warren and others fear that a sharp drop in cryptocurrencies could harm businesses and workers, as well as cryptocurrency markets.
5. Overview:
- Since Trump’s embrace of cryptocurrencies, Bitcoin’s market capitalization has skyrocketed and its status in traditional finance has grown, making it a dominant “asset class” alongside stocks and bonds.
- But Bitcoin’s rise to public and corporate coffers—a trend called crypto treasury—brings stability and risk.
- The possibility of a national reserve for Bitcoin makes it more official and secure. However, sharp price fluctuations in cryptocurrencies still need to be managed carefully.
⚖️ Summary:
- Why prices soared: Trump’s statements and new reserve policies boosted investor confidence, pushing the price of BTC above $108,000.
- Why it matters: This signals a shift: Bitcoin is no longer just for techies; it’s now part of big finance and the American economic strategy.
- Why be cautious: Heavy reliance on cryptocurrencies can backfire if their value fluctuates too much, affecting the dollar and the broader economy.
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