Financial experts are abuzz as President-elect Donald Trump criticizes the current Federal Reserve policy, deeming interest rates as “far too high” despite ongoing inflationary pressures. Trump expressed his concerns at Mar-a-Lago club, stating that the outgoing administration has left a challenging situation for his incoming team.
These direct comments, made just before Trump’s inauguration, have sparked discussions about a potential shift in US monetary policy. This has led to speculation about a potential boost for Bitcoin and other risk assets in the upcoming year.
Anticipating the 2017 Trump Playbook: Dollar Weakness, Bitcoin Strength?
While the economic and geopolitical landscapes have evolved since Trump’s initial term, some analysts draw parallels to his 2017 rhetoric. At that time, he criticized a strong US dollar, which was followed by a notable decline in the currency. This shift coincided with a broader risk-on environment, leading to rallies in equities and the cryptocurrency markets.
Julien Bittel, Head of Macro Research at Global Macro Investor (GMI), highlighted this pattern by drawing a comparison on X. He emphasized the impact of a strong dollar on US businesses and its negative effects on exports, corporate earnings, and economic growth.
Bittel concluded by noting the potential impact on Bitcoin and other cryptocurrencies, suggesting a similar scenario to 2017 where a weaker dollar could lead to a surge in risk assets.
Other experts like Steve Donzé, Deputy CIO for Multi Asset at Pictet Asset Management Japan, also foresee a potential peak in the US Dollar Index (DXY), similar to the pattern observed in 2017. Donzé shared a chart on X, hinting at a possible decline in the dollar’s value in the coming weeks.
Analysts like Silver Surfer (@SilverSurfer_23) have pointed out historical analogies in the DXY’s movements before Trump’s inaugurations in 2017 and 2025. This has led to speculations that a potential decline in the dollar could benefit risk assets, including Bitcoin.
Currently, BTC is trading at $94,950.
