Trump Praises Bitcoin for Easing Dollar Pressure
Trump Endorses Bitcoin at White House Press Conference
During a White House press conference on June 28, 2025, US President Donald Trump celebrated the growth of the cryptocurrency sector and noted that more businesses are accepting Bitcoin payments. He emphasized that “it takes a lot of pressure off the dollar,” praising Bitcoin’s potential to create jobs and strengthen the economy.
Implications for the US Dollar
By promoting Bitcoin, Trump highlighted an alternative store of value that may relieve demand for US dollars. As global adoption of Bitcoin increases, some analysts believe this trend could mitigate currency dilution caused by excess dollar issuance.
The Triffin Dilemma and Global Liquidity
Trump’s remarks echo the Triffin Dilemma—the inherent conflict between issuing the world’s reserve currency and preserving its long-term stability. To supply dollars for international trade and reserves, the US must run persistent trade deficits, which can undermine the currency’s value over time.
Rising Money Supply and Deficits
The Federal Reserve’s M2 money supply continues its upward trajectory, signaling ongoing monetary expansion. Financing chronic trade deficits through new money creation dilutes each dollar’s purchasing power, a core concern for policymakers and investors alike.
National Debt and Bitcoin Coverage Debate
Trump has even toyed with the idea of using Bitcoin to pay down the national debt. However, critics point out that the US government’s $37 trillion debt far exceeds Bitcoin’s capped supply, making full debt coverage via BTC impractical.
Analysts Warn “Nothing Stops This Train”
Macroeconomist Lyn Alden coined the phrase “nothing stops this train” to describe governments’ relentless money printing. With few signs of restraint, currency devaluation may continue, fueling interest in non-inflationary assets like Bitcoin.
Outlook for the Dollar Index
The US Dollar Index (DXY) recently fell to its lowest level in three years, while rising Treasury yields reflect waning confidence in the government’s debt sustainability. As critics and supporters debate Bitcoin’s role, the dollar’s long-term strength remains under scrutiny.