Dollar weakness and Bitcoin strength? Trump’s crypto bet with global consequences for investors
Donald Trump caused a stir with the USA’s first strategic Bitcoin reserve. But according to one expert, the move also raises questions about the strength of the US dollar.
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• US Strategic Bitcoin Reserve Gives Bitcoin More Legitimacy
• Expert warns: Signal of weakness in the US dollar
• Opportunities and risks for investors in view
Donald Trump shook up the financial world with a historic step: in March 2025, he created the first strategic Bitcoin reserve in the USA. This means that Bitcoin will officially join gold in the national reserve assets for the first time. This decision could have far-reaching consequences for investors.
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Bitcoin: From speculative object to state asset
According to MarketWatch columnist Jurica Dujmovic, the message is clear: Bitcoin is no longer just a risky object of speculation, but part of government financial policy. According to data from the US Treasury Department, the government now holds almost 200,000 Bitcoin. This would potentially make the US the world’s largest government holder of Bitcoin. However, it should be noted that the government has not yet purchased any Bitcoin on the market. The reserves consist almost entirely of confiscated coins from criminal and civil cases that were confiscated by federal authorities.
According to Dujmovic, this official recognition gives Bitcoin new legitimacy. The Trump administration referred to Bitcoin in the executive order as digital gold due to its fixed supply of 21 million coins and its hack-resistant security record. Institutional investors are likely to see this as a signal to get more involved, according to the MarketWatch expert.
Dollar Weakness: A Warning Sign for Investors?
From an expert perspective, what the move says about the US dollar is even more significant. In 2025, the US Dollar Index (DXY) recorded its weakest half-year performance in more than 50 years, according to JPMorgan. At the same time, the dollar’s share of global currency reserves fell to 58 percent in the first quarter of 2025, according to the Federal Reserve. In 2000 it was still 71 percent.
According to Dujmovic, if its own government begins to diversify into Bitcoin, this could be a warning sign: confidence in the long-term strength of the dollar is no longer unshakable. According to the expert, investors should therefore diversify more internationally – with stocks, bonds or raw materials. Real assets such as real estate funds (REITs) have also historically proven their worth in phases of currency devaluation.
Bitcoin as Inflation Protection: A Deceptive Hope?
Proponents see Bitcoin as a hedge against inflation. Unlike fiat money, which central banks can print indefinitely, the amount of Bitcoin is algorithmically capped at 21 million. Bitcoin, unlike the dollar, would not be devalued by printing money, advocates argue.
The MarketWatch columnist takes a more nuanced view: In the last phases of inflation, Bitcoin often developed like a risky asset instead of securing stable purchasing power like gold. Therefore, careful handling is necessary. In any case, financial advisors would recommend only adding cryptocurrencies to a very small extent – usually 1 to 5 percent of a portfolio.
Trump’s Bitcoin rush marks a historic turning point. From the expert’s perspective, the US government is giving the cryptocurrency unprecedented legitimacy, but at the same time it is raising questions about the stability of the dollar. Whether Bitcoin is actually “digital gold” in the end remains an open question.
Bettina Schneider / editorial team finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.