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President Donald Trump has made a big announcement! He told attendees at Miami’s America Business Forum that cryptocurrency “takes a lot of pressure off the dollar” and said he wants the United States to become “the Bitcoin superpower” and “crypto capital of the world.” He argued that digital assets form part of a broader strategy for US leadership in finance and technology.
Trump said his executive orders ended what he described as a federal “war on crypto,” drawing a contrast with the prior enforcement-led approach. He linked this policy shift to ambitions in artificial intelligence as well, claiming the United States holds a clear lead over China and should not allow rivals to set the pace in crypto.
The administration has backed that rhetoric with new frameworks. In March, Trump signed an order to create a Strategic Bitcoin Reserve and a US Digital Asset Stockpile using coins obtained through federal seizure. In July, he signed the GENIUS Act, which sets federal rules for payment stablecoins and aims to reinforce the dollar’s reserve currency status by requiring backing with cash and Treasuries.
Market data shows that Bitcoin often moves in the opposite direction to the US Dollar Index (DXY). Research cited by analysts places the historic correlation near -0.7, implying stronger dollar periods tend to coincide with weaker Bitcoin prices.
During the Federal Reserve’s 2022 tightening cycle, the DXY rose to multi-decade highs while Bitcoin dropped from about $47,000 to below $17,000. Analysts note that Bitcoin has behaved more like a high-beta risk asset than a classic safe haven, rising when financial conditions loosen and falling when liquidity tightens.
Recent macro data reinforces that pattern. Strong US jobs and growth data in late September strengthened the dollar, driving Bitcoin down below $111,000. Later, better-than-expected services and payroll reports lifted the dollar again, limiting Bitcoin’s recovery close to $103,000.
This dynamic creates a policy tension. If wider crypto adoption and dollar-backed stablecoins succeed in increasing global demand for the dollar, they may help keep the currency firm. Yet a stronger dollar has historically weighed on Bitcoin performance, even as Washington promotes strategic reserves and digital asset leadership.
Senator Cynthia Lummis has described the Strategic Bitcoin Reserve as a potential tool to address the federal debt burden, and administration fact sheets state that the reserve will initially rely on more than 130,000 BTC already held through criminal forfeitures.
At the same time, Eric Trump has promoted a dollar-pegged stablecoin, USD1, through World Liberty Financial. He argues that these tokens could bring in capital from all over the world to US markets, although critics in Congress have made conflict-of-interest arguments.
Additionally, the institutional involvement in crypto is increasing with these policy changes. According to a new survey by the Alternative Investment Management Association and PwC, 55% of traditional hedge funds currently have crypto assets, compared to 47% in 2024, and the average allocation of assets under management is close to 7%, although most funds have less than 2% exposure.
Respondents in that survey cited the clearer US regulatory environment, including the GENIUS Act and crypto-friendly agency leadership, as a major factor encouraging higher allocations.
Bitcoin remains the most widely held digital asset among these funds, followed by Ether and Solana, underscoring how Trump’s policy agenda and the market’s search for returns now intersect with the unresolved question of how Bitcoin will perform if the dollar grows even stronger.
Also Read: Crypto News Today: XRP Ledger Growth Soars, Ripple Raises $500M, MetaPlanet Expands Bitcoin Treasury
