Trump's economic advisor, Scott Bessent, claims a potential Trump presidency will adhere to a strong dollar policy, which could have significant effects on the crypto market.
Trump's Economic Policy
Scott Bessent assures that the Trump administration will maintain a strong dollar policy in line with the U.S.' long-standing economic goals. While Trump and his running mate JD Vance had previously advocated for a weaker dollar to boost U.S. manufacturing, Bessent states that the current strategy does not include deliberately devaluing the currency.
Impact on Crypto Market
Support for a strong dollar might pressure the cryptocurrency market, especially Bitcoin, which has historically struggled against a rising dollar. Despite Trump's positive stance on crypto-assets, a stronger dollar could cap gains in dollar-denominated assets, including cryptocurrencies.
Political Landscape
As the November 5th election approaches, Trump is reportedly gaining ground over Kamala Harris according to prediction markets like Polymarket. Trump's potential return to the White House is welcomed by crypto advocates, given his positive stance on digital assets. Moreover, Bessent is considered a potential candidate for Treasury Secretary, thanks to his expertise and high praise.
A potential Trump presidency may significantly impact currency and cryptocurrency markets. While a strong dollar remains a goal, whether this policy supports economic and innovation growth remains to be seen.