Crypto Takes a Lot of Pressure Off the Dollar: Trump
U.S. President Donald Trump stated that cryptocurrency alleviates pressure on the dollar and expressed his vision to make the U.S. the Bitcoin superpower, the crypto capital of the world, and a leader in AI. His statement comes amidst a decline in the cryptocurrency market and ongoing economic challenges for the U.S., including a turbulent dollar performance in early 2025. The dollar, however, has since shown a rebound due to Federal Reserve policy changes, easing U.S.-China trade tensions, and strong economic indicators. Trump's administration is stockpiling seized Bitcoin in a national reserve to strengthen financial influence. Meanwhile, the cryptocurrency market faced major liquidation recently, though Bitcoin has shown recovery, trading at $103,466.75 after a sharp drop.
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Trump's Vision for Cryptocurrency
On November 5, 2025, U.S. President Donald Trump made headlines by declaring that cryptocurrency “takes a lot of pressure off the dollar.”
Trump stated, “We’re making the US the #Bitcoin superpower, the crypto capital of the world.”
He emphasized his administration’s vision to make the United States the global leader in Bitcoin, cryptocurrencies, and artificial intelligence, underscoring the strategic importance of embracing digital currency for economic stability.
USD Recovery after a Challenging First Half of 2025
The U.S. dollar experienced its worst first-half performance in five decades, dropping 10.7% against major currencies through June 2025. This decline was fueled by aggressive trade tariffs and concerns about slowing U.S. economic growth.
By July 2025, the dollar began to recover, boosted by the Federal Reserve’s policy to lower interest rates by 25 basis points to a target range of 4.00% – 4.25%. Additionally, a truce in the U.S.-China trade war calmed fears of a global recession, reinforcing the dollar’s rebound.
Other contributing factors include corporate earnings, a strong job market, and political unrest in rival countries. By October, the dollar reached two-month highs, mitigating most of its earlier losses. However, analysts remain cautious, citing potential Federal Reserve rate cuts and the likelihood of renewed trade tensions as risks to sustained recovery.
Analyzing Trump's Statement on Cryptocurrency and USD
Trump’s claim that cryptocurrency reduces the pressure on the dollar has some merit. The U.S. economy requires large dollar outflows to support global trade, leading to perpetual deficits and long-term impacts on the dollar’s value through inflation.
Bitcoin, with its fixed supply of 21 million coins, acts as “digital gold.” It provides a value store independent of traditional monetary policies, making it a hedge against USD weakness during periods of economic uncertainty.
Recognizing this potential, Trump signed an executive order to stockpile seized Bitcoin into a national reserve. This strategy aims to alleviate the structural pressure on the dollar by accumulating scarce digital assets instead of relying on printing additional currency.
Recent Downtrend in the Cryptocurrency Market
The cryptocurrency market recently faced catastrophic headwinds. A massive liquidation wiped out over $2.1 billion in investments, causing Bitcoin to drop below $100,000 for the first time since June.
During this event, Bitcoin lost $470 million worth of positions, while Ethereum saw $377 million worth of positions liquidated, according to Coinglass. Despite this sharp decline, the market is showing resilience. Bitcoin has recovered significantly, trading at around $103,466.75 with a 2.58% surge in the last 24 hours.