Before thousands of attendees, he said digital assets could “ease pressure on the dollar” and declared that America is ready to lead the world as both the “bitcoin superpower” and the “crypto capital.”
During the Federal Reserve’s 2022 rate hikes, the Dollar Index rose to 114 while Bitcoin fell from $47,000 to below $17,000. But in 2020 and 2021, when the dollar weakened, Bitcoin soared to around $64,000.
Reports also note that Bitcoin tends to act like a high-risk asset rather than a hedge, rising when money is cheap and dropping when liquidity tightens.
Academic studies using wavelet analysis confirm the two assets often move out of sync, though the pattern isn’t perfectly stable.
The idea would start with about 130,000 BTC the government already holds through criminal forfeitures, a supply valued near $34 billion.
Treasury Secretary Scott Bessent is reportedly assessing how such a reserve might operate beyond traditional gold valuation methods.
Meanwhile, Eric Trump has promoted stablecoins, saying a USD1 token from World Liberty Financial could attract “trillions” into US markets.
The crypto market is finally showing signs of rejuvenation, with Bitcoin reclaiming the $103,000 mark.
Most other crypto assets are also trading in the green zone today. Trump Coin is among those leading the pack, recording massive gains with a double-digit rally in the daily and 14-day charts.
However, the coin is still down 4% over the last week. TRUMP is currently the 4th-best performing crypto in the daily charts, followed by Internet Computer (ICP), Quant (QNT), and Zcash (ZEC).
Trump has been highly vocal in support of the crypto industry, even allowing crypto donations for his 2024 Presidential campaign.
He issued, among his first executive orders upon assuming office, the establishment of a strategic digital asset reserve for the US.
Featured image from Getty Images, chart from TradingView
