CryptoQuant CEO and founder Ki Younger Ju mentioned that President-elect Donald Trump’s Bitcoin (BTC) insurance policies doubtless rely upon the perceived power of america financial system and the US greenback by the worldwide funding group.
Ju argued that store-of-value property like Gold and BTC surge in value when traders understand threats to US financial hegemony. Nonetheless, traders proceed to precise confidence within the US financial system and see the US greenback as a secure haven foreign money.
The CEO mentioned that this place of power makes it unlikely that the Trump administration would adopt a Bitcoin strategic reserve to guard US greenback dominance and should trigger the President-elect to backtrack on pro-BTC insurance policies. The CEO wrote:
“Even earlier than his inauguration, Trump persistently warned different world leaders of the ability hole between the US and different nations. This rhetoric, mixed with elevated capital inflows to the greenback, might renew confidence in its supremacy.”
“Round me, many Koreans are selecting US {dollars} as a secure haven over gold or Bitcoin, significantly because the Korean received weakens,” The CEO continued. This development can be seen in rising economies the place people use US dollar stablecoins to store value.
The greenback power index exhibits the US greenback has been gaining power since October 2024. Supply: TradingView
Associated: US government will not buy Bitcoin in 2025 — Galaxy Research
Overcollateralized Stablecoins extending US greenback dominance
Paxos co-founder and CEO Charles Cascarilla just lately instructed Cointelegraph, on the Bitcoin Center East and North Africa (MENA) convention, that all the monetary system will finally be onchain.
Greenback-pegged stablecoins will probably be a cornerstone of the blockchain financial system and improve the utility of the US dollar by bringing the velocity and worldwide connectivity of the web to the fiat foreign money, Cascarilla mentioned.
People in jurisdictions experiencing hyperinflation have a tendency to make use of the US greenback as a retailer of worth in opposition to quickly depreciating native fiat currencies.
In March 2024, the Turkish lira’s inflation price hit a staggering 67%. Unsurprisingly, Turkey has the highest rate of stablecoin purchases, expressed as a proportion of gross home product (GDP), on the earth.
A 2023 report from Chainalysis revealed that over 50% of the digital property despatched to the Latin American nations of Argentina, Brazil, Columbia, Venezuela, and Mexico have been stablecoins.
Journal: Bitcoiners are ‘all in’ on Trump since Bitcoin ’24, but it’s getting risky
