Donald Trump
chose to address the US dollar in his first public statements since the trial, referring to its weakening as an international standard.
He also stated that the US currency, in his opinion, is about to collapse. In short, is this a strong signal that the time has come to invest in Bitcoin ?
After his arrest, the former president pleaded not guilty to 34 charges and had harsh words for the Biden administration.
For Trump, the US dollar's hours are numbered
Donald Trump, the forty-fifth US president, is currently under arrest even though he has pleaded not guilty to the 34 charges against him.
In his public statement after the charges were formalized, he preferred to talk about the decrease in the value of the US dollar.
Is this a sign that investors should start looking for a safe haven like Bitcoin?
Trump said:
“Our currency is collapsing and will soon no longer be the world standard, this will be our greatest defeat in 200 years of history.”
How to interpret Trump's statement on the dollar?
Yesterday, the charges that led to the indictment of former President Trump on Thursday, March 30, were finally formalized. The tycoon pleaded not guilty to 34 charges, including falsifying company records to pay two “women” before the 2016 US elections.
Donald Trump preferred to comment on the current state of the US sovereign currency, alluding to its weakening as an international standard. He called it the major defeat, one that would dethrone the United States from the role of “superpower”.
The US dollar is one of the most widely used currencies in the world . It is also the main reserve currency, largely due to the size and stability of the US economy. Several commentators have questioned the US dollar's status as a safe haven currency already during crises such as COVID-19.
The recent banking crisis, after the collapse of Silicon Valley and Signature Bank, also highlighted the systemic risks that arise when large centralized institutions fail. Trump argued that if he were President, the state of the U.S. economy would be better.
He stated:
“Our economy is collapsing. Inflation is out of control. Russia has joined China. Can you believe it? Saudi Arabia has joined Iran.”
Bitcoin's Chase
Bitcoin has seen gains in the last 24 hours
. The top cryptocurrency by market cap surpassed the $28,500 level with a 2% gain on the trading day.
However, BTC remains around 60% below its 2021 all-time high of $69,000.
Lyn Alden, founder of investment firm Lyn Alden Investment Strategy, believes it’s a good time to own Bitcoin. The macroeconomist and financial strategist said: “I recommend owning actual [non-derivative] Bitcoin for those who want to get exposure and learn how to store it themselves.”
Alden noted that in light of the recent banking and liquidity issues, many people around the world are turning to Bitcoin. According to Alden, the reason is that it is an asset with a finite supply that can be directly traded between peers without relying on a centralized third party.
He added that BTC is currently in a good position with some potential for returns over the next 3-5 years. He also warns of the need to be able to handle the inevitable volatility that accompanies this investment asset.
