Bitcoin Blast? Trump’s Fury Over High Rates Signals Big Move
Bitcoin experts are abuzz after President-elect Donald Trump lashed out at current Federal Reserve policy, saying interest rates are “too high” despite persistent inflationary pressures. “We inherited a difficult situation from the outgoing administration,” Trump said at his Mar-a-Lago club, adding that officials appeared to be “doing everything they can to make his incoming team more difficulty”.
These blunt remarks were made less than two weeks ago trump inaugurationfueling expectations of a possible shift in U.S. monetary policy and fueling speculation that Bitcoin and other risk assets could be boosted in the new year.
2017 Trump playbook: Dollar ‘too strong’, Bitcoin rising?
While the economic and geopolitical landscape has changed since Trump’s first term, some market observers saw similarities to his 2017 comments. At the time, he lambasted the U.S. dollar as being “too strong,” a stance that led to a sharp devaluation of the U.S. dollar. The U.S. Dollar Index (DXY) peaked at around 104 in early January 2017, but began a downward trend that continued until early 2018, bottoming out at around 98.
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The dollar’s sharp moves coincided with broader markets. risk environmentfueling a rebound in the stock market as well as the Bitcoin and cryptocurrency markets. Julien Bittel, head of macro research at Global Macro Investor (GMI), draws the direct Compare on X.
“The last time Trump said ‘too high’ was on the dollar – in January 2017, just days before he was inaugurated, he said this: ‘Our companies can’t compete with They’re competing now because our currency is so strong it’s killing us.”
It is worth noting that last year Trump also called the recent strength a “huge burden on American businesses.” Bittle further pointed out: “Trump understands the impact of a strong dollar – the same logic applies to high interest rates. They suppress exports, hurt corporate profits, and slow economic growth.”
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Speaking about the impact on Bitcoin and the broader cryptocurrency market, Bittel concluded: “What happened next? Well, the U.S. dollar started to fall sharply, setting up one of the most critical macro moves we’ve seen in years. Laying the groundwork – triggering a meltdown in risk assets. Deja vu? Let’s see how that plays out.”
Bittel isn’t the only expert speculating that DXY may have peaked, mirroring its 2017 topping pattern. Steve Donzé, Deputy Chief Information Officer, Multi-Asset, Japan Pictet Asset Management, shared discussed Chart on US dollar index trend The chart shows a similar pattern that could signal renewed weakness in the U.S. dollar in the coming weeks.
In another post, financial analyst Silver Surfer (@SilverSurfer_23) pointed out an uncanny temporal overlap: “DXY peaked on January 3, 2017, 18 days before Trump was inaugurated. The U.S. Dollar Index is expected to rise in 2025 January 2, 2019 (19 years before Trump’s inauguration) day) peaked.” He described the similarity as “crazy history repeating itself,” and explained that he believed there was a correlation between the dollar index’s moves before the two inaugurations.
Such analogies have fueled speculation that another plunge in the dollar could create an environment conducive to risk assets. If the US dollar does enter a new downtrend (as it did in 2017-2018), Bitcoin may experience a new wave of liquidity and speculative appetite.
At press time, BTC was trading at $94,950.
Featured image created using DALL.E, chart from TradingView.com
