Trump’s Victory Predicted to Boost Bitcoin and Stablecoins, Analysts Say
American President Trump’s policies linked to cryptocurrency and trade have delivered a significant influence on both the US Dollar and Bitcoin. At the initial time, Trump was not a crypto lover, but later he changed his mind and fully accepted cryptocurrencies ahead of the election. Later, Trump pledged to make America a crypto capital of the planet and develop a “strategic reserve” of Bitcoin (BTC).
Trump’s campaign supported donations in the crypto landscape, and he especially courted crypto enthusiasts at a Bitcoin conference. He took many initiatives, like World Liberty Financial, to enhance cryptocurrency trading in the country.
According to Alex Gladstein, the chief strategy officer at the Human Rights Foundation, Bitcoin shows high records following Trump’s election and also his embrace of digital currencies.
Alex Gladstein added, the interest of Trump in cryptocurrencies is more about enhancing stablecoin to increase the strength of dollars than about replacing fiat currencies.
He further revealed that the support of Trump towards the bitcoin and crypto industry was a sort of Trojan horse to strengthen the dollar dominance via what is currently one of the highest sectors of the entire industry.
Digitizing the Dollar
Analysts recommend that the administration of Trump is indirectly digitizing the dollar after effectively supporting and regulating dollar-backed stablecoins.
Trump’s interest in cryptocurrency helps boost the role of the U.S. dollar in the crypto industry without the government directly circulating a CBDC (Central Bank Digital Currency), which the American president opposes.
Stablecoins have encountered a sudden expansion, assisted by initiatives such as GENIUS ACT, which demonstrates clear laws for stablecoin distribution in the United States. These stablecoin, framed to sustain a 1:1 value with the dollar, showcase relevant development and are being expanded for major payments.
Howard Lutnick, 41st United States Secretary of Commerce, said the plans of the Trump administration to embrace cryptos, a huge, unregulated sector that has historically functioned on the peripheral economic activities.
Lutnick added, Technology is at the base of the Trump presidency. The administration of Trump has obtained a pro-crypto stance, involving the strategic Bitcoin reserve creation and assisting laws such as the GENIUS Act for stablecoin regulation. This variation has enhanced the value of Bitcoin and strengthened investor confidence.
According to a crypto analyst, the Bitcoin price rise potentially influences the international dominance of U.S. dollars. Likewise, the analyst added, the trade policies of Trump involving tariffs boost the dollar initially by unsettling investors and inspiring them towards safe-haven digital assets , involving BTC at times.
Additionally, various case studies noted that nations encountering economic difficulties turn to the U.S.Dollar in the form of stablecoin rather than BTC because of the volatility of the latter.
According to Alex Gladstein, the American President had become a president of stablecoin instead of BTC, utilizing this movement to “expand the dollar by enhancing a sector that purchases more Treasury debt. Nevertheless, Alex trusts that Bitcoin will continue to develop even with the present stablecoin push, as the major reasons behind its development remain important even today.
The post Trump’s Victory Predicted to Boost Bitcoin and Stablecoins, Analysts Say appeared first on BiteMyCoin.
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