According to Cointelegraph, the future of Bitcoin (BTC) policies under elected President Donald Trump may depend on the perception that the global investment community has about the U.S. economy and the U.S. dollar. Ki Young Ju, CEO and founder of CryptoQuant, suggests that assets like gold and Bitcoin often experience price increases when investors perceive threats to the economic dominance of the United States. However, current investor confidence in the U.S. economy and the U.S. dollar as a safe haven currency remains strong.
Ju believes that this confidence in the strength of the U.S. dollar makes it unlikely that the Trump administration will adopt a strategic reserve of bitcoin to maintain the dominance of the U.S. dollar. This could lead to a reversal of any pro-bitcoin policy. Ju noted that even before taking office, Trump frequently highlighted the power disparity between the United States and other nations, which, along with the increase in capital inflows to the dollar, could reinforce confidence in its supremacy.
Ju also observed that many Koreans prefer U.S. dollars over gold or bitcoin as a safe haven, especially as the Korean won weakens. This trend is reflected in emerging economies, where people opt for dollar-pegged stablecoins to preserve value. The dollar strength index indicates that the U.S. dollar has been gaining strength since October 2024.
In relation to this topic, Charles Cascarilla, co-founder and CEO of Paxos, shared his thoughts at the Bitcoin Middle East and North Africa (MENA) conference. He stated that the financial system is evolving towards a fully on-chain model, in which dollar-pegged stablecoins play a crucial role in the blockchain economy.
