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Bitcoin experts caused a stir when President-elect Donald Trump criticized the Federal Reserve’s current policy, calling interest rates “too high” despite ongoing inflationary pressures. “We inherit a difficult situation from the outgoing administration,” Trump said at his Mar-a-Lago club, adding that officials appear to be “doing everything they can to make it more difficult” for his new team.
The blunt comments, coming less than two weeks before Trump’s inauguration, have raised expectations of a potential shift in US monetary policy — and sparked speculation about a strengthening in bitcoin and other risk assets in the new year.
Trump’s 2017 Playbook: Dollar ‘Too Strong,’ Bitcoin Rising?
Although the economic and geopolitical landscape has changed since Trump’s first term, some market watchers see similarities to his rhetoric in 2017. At the time, he criticized the US dollar, which he viewed as “too strong,” a stance that preceded a notable decline in the currency. . The US Dollar Index (DXY) peaked near 104 in early January 2017, but began a downtrend that extended into early 2018, reaching a low of 98.
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This sharp move in the dollar coincided with a broader risk-on environment, leading to gains in stocks as well as Bitcoin and cryptocurrency markets. Julian Bittle, head of macroeconomic research at Global Macro Investor (GMI), charted the direct guidance comparison On X.
“The last time Trump said something was ‘too high,’ the dollar was — in January 2017, a few days before his inauguration,” Bittle said. “And that’s what he said: ‘Our companies can’t compete with them.’ Now because our currency is so strong. And that’s “It kills us.”
It is worth noting that last year, Trump described the latter force as a “huge burden on American companies.” Bittle further claimed that “Trump understands the impact of a strong dollar – and 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, Bittle concluded: “What happened next? Well, the dollar started to fall dramatically, paving the way for one of the most significant macro moves we have seen in years – melting the asset.” Dangerous. Deja vu, I guess. Let’s see how it goes.”
Bittel is not the only expert predicting that the DXY may have already peaked, reversing the 2017 peak pattern. Steve Donzi, deputy IT director for multi-asset at Pictet Asset Management Japan, shared widely discussion The chart on
In a separate post, financial analyst Silver Surfer (@SilverSurfer_23) pointed out a strange timing overlap: “DXY topped on January 3, 2017 – 18 days before Trump’s inauguration. DXY appears to have peaked on January 2, 2025.” , 19 days before Trump’s inauguration and described the similarity as a “crazy repetition of history,” explaining that he sees a connection between DXY’s trajectory ahead of both inaugurations.
Such measurements fuel speculation that a repeat decline in the dollar could create an environment that favors risky assets. If the dollar does enter a new downtrend — like it did in 2017-2018 — Bitcoin could ride a wave of renewed liquidity and speculative appetite.
At press time, Bitcoin was trading at $94,950.
Featured image created with DALL.E, a chart from TradingView.com
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