Trump Just Gave Crypto The Biggest Compliment Yet

US President Donald Trump made one of his strongest statements yet on cryptocurrency during a major speech at Miami’s America Business Forum this week.

Before thousands of attendees, he said digital assets could “ease pressure on the dollar” and declared that America is ready to lead the world as both the “bitcoin superpower” and the “crypto capital.”

Trump said his administration’s policies had replaced what he described as years of hostility toward the crypto industry with new support for innovation and growth.

Dollar And Bitcoin At Odds

Market data shows a long-running tension between the US dollar and Bitcoin. Analysts say their price movements often go in opposite directions.

During the Federal Reserve’s 2022 rate hikes, the Dollar Index rose to 114 while Bitcoin fell from $47,000 to below $17,000. But in 2020 and 2021, when the dollar weakened, Bitcoin soared to around $64,000.

Reports also note that Bitcoin tends to act like a high-risk asset rather than a hedge, rising when money is cheap and dropping when liquidity tightens.

Academic studies using wavelet analysis confirm the two assets often move out of sync, though the pattern isn’t perfectly stable.

Policy Moves And Reserve Plans

Trump’s position lines up with ongoing policy discussions in Washington. Senator Cynthia Lummis has backed creating a Strategic Bitcoin Reserve to help offset the nation’s $35 trillion debt.

The idea would start with about 130,000 BTC the government already holds through criminal forfeitures, a supply valued near $34 billion.

Treasury Secretary Scott Bessent is reportedly assessing how such a reserve might operate beyond traditional gold valuation methods.

Meanwhile, Eric Trump has promoted stablecoins, saying a USD1 token from World Liberty Financial could attract “trillions” into US markets.

Lawmakers including Maxine Waters and Elizabeth Warren have raised conflict-of-interest concerns, noting that the GENIUS Act signed in July has no restrictions on presidential family involvement in digital asset ventures.

The crypto market is finally showing signs of rejuvenation, with Bitcoin reclaiming the $103,000 mark.

Most other crypto assets are also trading in the green zone today. Trump Coin is among those leading the pack, recording massive gains with a double-digit rally in the daily and 14-day charts.

TRUMP’s price has rallied 12% in the last 24 hours, according to CoinGecko data, 35% in the 14-day charts, and 1.9% over the previous month.

However, the coin is still down 4% over the last week. TRUMP is currently the 4th-best performing crypto in the daily charts, followed by Internet Computer (ICP), Quant (QNT), and Zcash (ZEC).

Trump has been highly vocal in support of the crypto industry, even allowing crypto donations for his 2024 Presidential campaign.

He issued, among his first executive orders upon assuming office, the establishment of a strategic digital asset reserve for the US.

Featured image from Getty Images, chart from TradingView