Trump’s Bitcoin Gamble: Economist Fears Dollar Dominance at Risk – Full Breakdown
Bitcoin’s bull run just got political. As Trump doubles down on crypto, economists warn the dollar’s throne is wobbling.
Here’s why Wall Street’s sweating:
The Dollar Dilemma
When a former president bets big on decentralized money, traditional finance starts playing defense. Trump’s endorsement isn’t just market-moving—it’s regime-shaking.
Geopolitical Whiplash
Cold War 2.0’s currency wars just got hotter. With China pushing digital yuan and now US politicians flirting with crypto, the 80-year petrodollar system looks… replaceable.
Bonus cynicism: Nothing unites politicians faster than the smell of fresh campaign donations—especially when they’re denominated in BTC.
Trump And Bitcoin: Impact On Dollar Demand
According to Peter Schiff, when people swap US dollars for Bitcoin, they pull demand away from the world’s main reserve currency.
Bitcoin’s price has jumped more than 30% this year, and some see it as a shield against inflation. Schiff argues that those dollar sales chip away at the greenback’s standing.
He warned that the broader economy could feel the effects if the trend grows.
Pandering to his donors and to promote his family business, TRUMP claimed that Bitcoin “takes pressure off the dollar and is good for the country.” But selling dollars to buy Bitcoin puts added pressure on the dollar. Also, wasting resources on Bitcoin is harmful to our country.
— Peter Schiff (@PeterSchiff) June 28, 2025
Government And State Reserves
Based on reports, the federal government plans no direct sales of dollars. Instead, it will use funds from criminal and civil forfeiture to build a Strategic Bitcoin Reserve.
At least 10 states, including Texas and Florida, are following suit. They’re setting aside capital to buy and hold crypto on their balance sheets. That shift means government units could end up tied to a volatile asset.
US President Donald Trump’s private venture, Trump Media, has raised $2.3 billion through stock offerings and convertible notes to fuel a Bitcoin treasury.
In May, a WHITE House event hosted top holders of the “TRUMP” meme coin. Attendees spent nearly $150 million for seats at a dinner.
Critics say the family has already netted over $1 billion from its crypto ventures. Those figures show how deeply the campaign is courting the crypto community.
Political And Financial RisksPeter Schiff suggests that Trump’s crypto push is less about monetary policy and more about wooing wealthy donors.
He described the fundraising events as “a ploy to attract crypto-based support.” At the same time, volatility in Bitcoin markets poses real financial risk. A sudden price drop could leave any reserve tied up in losses rather than gains.
Recent Investment In DeFiWorld Liberty Financial, another Trump family business, secured a $100 million investment from Aqua 1 as part of plans to expand in decentralized finance.
Trump Jr. has said that banking cut‑offs forced the family toward cryptocurrencies, but many see the MOVE as a bid for fresh funds. That deal highlights how the family is betting big on emerging crypto sectors.
Featured image from MediaNama, chart from TradingView
