CryptoQuant CEO: President-elect Donald Trump's Approach to Bitcoin Will Likely Hinge on the Economic Status of the United States

Ki Young Ju, CEO and founder of CryptoQuant, has highlighted that President-elect Donald Trump's approach to Bitcoin will likely hinge on the economic

As President-elect Donald Trump prepares to take office, the cryptocurrency community is eagerly awaiting his administration's approach to Bitcoin and other digital currencies.

Ki Young Ju, CEO and founder of CryptoQuant, recently highlighted that Trump's stance on Bitcoin will likely be influenced by two key factors: the economic status of the United States and the global perception of the US dollar's strength.

According to Ju, assets like gold and Bitcoin tend to see a price increase when investors feel that US economic dominance is under threat. Despite the notable depreciation of over 90% in the US dollar's value since 1913, it still remains the top store of value among fiat currencies, commanding investors' confidence.

"If the new administration feels that the US economy is strong and the world still sees the US dollar as a safe haven asset, then Bitcoin will likely not be adopted as a strategic reserve to maintain the dollar's strength," Ju explained. "This could lead to a pivot away from pro-Bitcoin policies, especially considering Trump's focus on the capital gap between the US and other nations, which helps drive dollar inflows."

Interestingly, the perception of the US dollar as a secure asset is not limited to the United States. In South Korea, for instance, many people prefer to store their wealth in the US dollar over gold or Bitcoin, particularly as the Korean won weakens.

This trend is also evident in emerging economies, where the US dollar and dollar-pegged stablecoins are widely used to store value amidst hyperinflation. Stablecoins, which are digital assets pegged to the value of the US dollar, integrate the speed and connectivity of the internet, enhancing the utility of the dollar and solidifying its role in the blockchain economy.

In places like Turkey, which is facing steep inflation, the reliance on stablecoins as a percentage of GDP is significant. Similarly, Chainalysis reports that over half of digital assets sent to several Latin American nations last year were in stablecoin form, underscoring their critical role in these economies.