CryptoQuant CEO and founder Ki Young Ju believes that President-elect Donald Trump’s Bitcoin policies will likely depend on how the global investment community perceives the strength of the US economy and the dollar.
Ju explained that store-of-value assets like gold and Bitcoin tend to rise in price when investors feel US economic dominance is under threat. However, he noted that confidence in the US economy and the dollar remains strong, with many investors continuing to view the dollar as a safe haven currency.
This perception of strength, Ju argued, makes it unlikely that the Trump administration would adopt a Bitcoin strategic reserve. Instead, Trump may prioritize policies that reinforce the dominance of the US dollar. Ju stated:
“Even before his inauguration, Trump consistently warned other world leaders of the power gap between the US and other nations. This rhetoric, combined with increased capital inflows to the dollar, could renew confidence in its supremacy.”
He added, “Around me, many Koreans are choosing US dollars as a safe haven over gold or Bitcoin, particularly as the Korean won weakens.” This trend is mirrored in emerging economies, where individuals increasingly use US dollar stablecoins to store value.
Stablecoins Boost US Dollar Dominance
Paxos CEO Charles Cascarilla recently told Cointelegraph at the Bitcoin MENA conference that stablecoins will be central to the blockchain economy. According to him, dollar-pegged stablecoins enhance the utility of the dollar by combining fiat currency stability with the speed and global reach of blockchain technology.
In countries like Turkey, where inflation hit 67% in March 2024, stablecoins have become vital. Turkey leads the world in stablecoin purchases as a percentage of GDP. Similarly, a 2023 Chainalysis report revealed that over 50% of digital assets sent to countries like Argentina, Brazil, and Mexico were stablecoins.
