Although it’s impressive to see Bitcoin hovering around $80,000, the U.S. dollar is expected to grow significantly during Donald Trump’s first year as president. Despite the turbulence caused by Trump’s tariffs and trade policies, the USD is demonstrating strength against other fiat currencies.
With the USD Index on the rise and the Euro, Canadian Dollar, and Mexican Peso gradually losing value, these shifts may impact cryptocurrency prices. While it might be premature to label the crypto market as 'bloated,' it’s fair to say that uncertainty is driving investors toward more traditional assets. As a result, cryptocurrencies and related exchange-traded funds (ETFs) are likely to face downward pressure against the strengthening USD.
This bearish market may persist until consumer confidence improves. Right now, people are hesitant to make discretionary purchases, focusing instead on essentials or goods they want to buy before the tariffs take full effect. While crypto enthusiasts may not view buying Bitcoin as a frivolous expense, the average investor—faced with declining market performance—might opt to cash out their crypto holdings as part of a broader risk-averse strategy.
Trump’s tariffs are shaking global markets, forcing investors to rethink their priorities. Precious metals like gold and silver are emerging as safe havens, alongside the rising USD and tangible goods. In this climate of economic uncertainty, the focus is shifting toward assets perceived as more stable. One thing is clear: Trump’s policies are undeniably shaking up the world economy.