Bitcoin Faces Pressure as US Dollar Strengthens Amid Trump Policies and Federal Reserve Stance

According to a recent analysis by CoinDesk’s James Van Straten, the US dollar is poised to exert downward pressure on Bitcoin in the foreseeable future. The assertion is backed by the anticipated economic policies under the Trump administration, alongside the Federal Reserve’s projected interest rate strategy. As Van Straten notes, the potential for tariffs on major trading partners may heighten global geopolitical tensions, solidifying the US dollar’s status as a safe haven asset. Furthermore, the Fed’s indication of only two potential rate cuts in 2025, which significantly diverges from prior expectations, is contributing to an appreciating dollar and increasing bond yields. These macroeconomic factors are coalescing to create a challenging environment for Bitcoin, which could continue to face pressure as investors gravitate towards traditional safe-haven investments.