US Dollar’s Historic Decline Could Reshape Global Trade, Impacting Crypto Markets

The US national debt crisis has reached a pivotal juncture, with the TRUMP administration openly courting a dollar collapse as the only viable solution. Stephen Miran, the former president’s top economic adviser, argues in his controversial paper that decades of dollar overvaluation have distorted global trade - a thesis now driving radical policy shifts.

This year’s 10% greenback decline reflects growing skepticism about US debt sustainability and Treasury market stability. Yet historical patterns suggest mere depreciation won’t correct trade imbalances. During Trump’s first term, a 15% dollar drop failed to budge the persistent 2.5-3.0% GDP trade deficit.

The administration’s gamble on currency devaluation carries profound implications for digital assets. Bitcoin’s fixed supply and decentralized nature position it as a potential hedge against fiat currency volatility, while altcoins may benefit from capital flows seeking alternatives to dollar-denominated assets.