Main highlights
- US President Donald Trump says cryptocurrencies will relieve significant pressure on the dollar
- He also reiterated his vision of making the country a Bitcoin superpower, the world’s crypto capital, and the undisputed leader in artificial intelligence.
- President Trump’s statement came amid a downward trend in the virtual currency market.
On November 5, US President Donald Trump issued a major statement amid the country’s continued economic challenges, saying that cryptocurrencies would “take a lot of pressure off the dollar.”
Right now: 🇺🇸 President Trump said cryptocurrencies “relieve a lot of pressure on the dollar. Cryptocurrency brings a lot of good things.”
“We believe that the U.S. #bitcoin A superpower and the crypto capital of the world.” pic.twitter.com/31xK1qCnys
— Bitcoin Magazine (@BitcoinMagazine) November 5, 2025
President Trump also reaffirmed his statement that his administration is working toward making the United States “a Bitcoin superpower, the crypto capital of the world, and the undisputed leader in artificial intelligence.”
USD regains stability after tough start in 2025
The US dollar has recovered from its worst first-half performance in 50 years and is poised for a recovery in the second half of 2025. By June, the dollar had depreciated by 10.7% against major currencies. The decline followed concerns about aggressive trade tariffs and slowing economic growth in the United States.
The US economy is currently in turmoil due to rising debt. Apart from this, the latest data is US inflation and unemployment rates (3% and 4.2%, respectively).
The dollar’s rebound began in July and gained momentum after the Fed’s decision to cut interest rates. Lower interest rates by 25 basis points and lower the target range for the federal funds rate to 4.00% to 4.25%..
Another major turning point that benefited the US dollar was the truce in the US-China trade war, which suspended new tariffs and calmed fears of a global recession. At the same time, the U.S. economy has shown remarkable resilience, with strong corporate profits and a strong job market outperforming other major economies.
The U.S. dollar’s recovery comes from political instability around the world, including in rival countries.
By October, the dollar had erased most of its losses for the year, rising to a two-month high. However, analysts remain cautious about the sustainability of this rise. They cited expectations for further rate cuts from the U.S. Federal Reserve and the possibility of renewed trade tensions as factors that could limit the dollar’s strength in coming months.
Can cryptocurrencies really absorb the pressure from the US dollar? Fact-checking President Trump’s statements
The U.S. dollar plays a vital role in the U.S. economy and the global economy. There is a certain logic to President Trump’s statements. To facilitate global trade and finance, the United States must supply vast amounts of dollars to other countries, incurring large permanent deficits in the process. This continued drain on money printing gradually damages the long-term value of the dollar through inflation. This also affects the national debt.
At some level, Bitcoin and other cryptocurrencies are a solution to this problem. These digital currencies function as parallel financial systems. Bitcoin operates as “digital gold” with a fixed supply of 21 million coins, providing a store of value independent of any single government’s monetary policy.
This mechanism for Bitcoin and other cryptocurrencies comes in handy in times of sharp declines in the US dollar, such as in early 2025. By investing in these digital currencies, investors can use digital currencies as an alternative to hedge against a weaker US dollar.
With this in mind, US President Donald Trump signed an executive order to stockpile seized Bitcoins in national reserves. This would allow the US to regain financial influence by accumulating scarce digital assets rather than relying entirely on printing more dollars, thereby easing structural pressures on global currencies.
Cryptocurrency market faces devastating headwinds
Just recently, the crypto market experienced a massive liquidation, with Bitcoin dropping below $100,000 for the first time since June. Over $2.1 billion worth of crypto investments have been wiped out of the crypto market. In this liquidation, Bitcoin witnessed According to Coinglass, positions worth $470 million were eliminated, and Ethereum positions worth $377 million were eliminated from the cryptocurrency market.
However, the crypto market has shown resilience to this downward trend. Bitcoin has recovered significantly after its plunge and is currently trading around $103,466.75, up 2.58% in 24 hours.