A Trump administration would likely maintain a strong dollar policy, aligning with long-standing U.S. economic goals, according to Trump’s economic advisor Scott Bessent. Speaking to the Financial Times on Sunday, Bessent downplayed fears of intentional dollar devaluation under a potential Trump presidency, suggesting instead that sound economic policies would naturally support a resilient dollar.
Dollar Strength vs. Crypto Market Outlook
The commitment to a strong dollar could present challenges for the crypto market, particularly for Bitcoin (BTC), which often struggles against a robust U.S. dollar. Despite Trump’s pro-crypto stance, a stronger dollar could cap gains in dollar-denominated assets, including cryptocurrencies.
“Currency values fluctuate based on the market,” Bessent explained. “If you have good economic policies, a strong dollar will follow naturally.” He clarified, however, that his comments did not represent Trump’s official position.
Trump and his running mate, JD Vance, previously advocated for a weaker dollar to boost U.S. manufacturing. However, Bessent suggested that Trump’s administration would not intentionally devalue the dollar, ensuring it remains a global reserve currency.
Trump Gains Ground in Election Race
With Election Day on Nov. 5 fast approaching, Kamala Harris is reportedly losing ground to Trump, according to Polymarket’s prediction markets. Trump’s potential return to the White House has been viewed positively by crypto advocates, given his favorable stance on digital assets.
Bessent Eyed for Treasury Secretary Role
Bessent, who founded the Key Square Group and previously served as chief investment officer at George Soros’ family office, is reportedly on Trump’s shortlist for Treasury Secretary. Trump recently praised Bessent, calling him “one of the most brilliant men on Wall Street.”
Bessent also addressed Trump’s proposed inflationary tariffs—up to 20% on all imports—explaining that these “extreme” positions are part of a negotiation tactic. “It’s escalate to de-escalate,” Bessent said, adding that Trump is a pragmatic businessman who ultimately favors free trade.
He further criticized the Democratic ticket, calling Harris “an economic illiterate” and labeling her running mate, Tim Walz, “twice as illiterate.”
Conclusion
While crypto markets may initially welcome Trump’s return, a resilient dollar policy could challenge BTC and other risk assets. With Trump’s pro-business administration taking shape, investors will be closely watching how economic policies evolve under a potential new leadership.
