Trump says Bitcoin eases dollar pressure as BTC holds $64,000

Trump said Bitcoin eases pressure on the US dollar, endorsing the asset as a hedge against dollar inflation as BTC held $64,417 on Aug. 7.

"Bitcoin eases pressure on the US dollar," Trump said, framing the asset as a mechanism to reduce dollar inflationary pressures and putting the US at the front of crypto leadership.

The endorsement lands as Bitcoin trades at $64,417, down from its Oct. 6 record of $126,173, with the Crypto Fear and Greed Index stuck in Extreme Fear near the mid-teens. Spot Bitcoin ETFs continued to bleed outflows in late January, and the 50-day average sits below the 200-day, keeping the death-cross signal intact. Traders now treat $70,000 as the next line in the sand, with forced selling possible if it breaks.

The statement strengthens the narrative of US crypto leadership after the White House established a Strategic Bitcoin Reserve and Trump signed an executive order allowing 401(k) accounts to invest in alternative assets including crypto. With Strategy holding 450,000 BTC and US entities controlling 65% of global reserves, the endorsement could attract institutional interest and support prices into the next Fed decision.

The dollar-pressure framing marks a shift from the administration's earlier tariff-driven volatility, when a 100% tariff on Chinese imports in October 2025 triggered the largest single-day crypto liquidation on record, wiping out over $19 billion across roughly 1.6 million traders. Trump's latest remarks suggest the White House now views Bitcoin as a complement to, rather than a competitor of, the dollar — a stance that could accelerate the Strategic Bitcoin Reserve's expansion plans.

The transmission runs through the dollar: if Bitcoin absorbs dollar liquidity, it could ease pressure on the greenback while drawing flows into spot ETFs. That dynamic already played out in early 2025, when US spot Bitcoin ETFs took in $1.9 billion in January, acquiring 51,500 BTC against 13,850 mined that month, according to exchange data.

For the market, the endorsement adds a policy tailwind to an asset already supported by constrained supply following the April 2024 halving, which cut mining rewards to 3.125 BTC. Analysts at Bitwise and VanEck expect ETF holdings to surpass 1.5 million BTC by 2026, while Bitwise CIO Matt Hougan reiterated a $200,000 target for the year. The next test comes with the Federal Reserve's rate decision, where any signal of easing could reinforce the bullish case.

This article is for informational purposes only and does not constitute investment advice.