Trump Policies Weaken US Dollar Amid Global Trade, Crypto Market Turmoil

President Donald Trump's recent policies and statements have significantly unsettled both traditional and cryptocurrency markets, escalating fears of a global trade crisis and weakening confidence in the U.S. dollar's status as the world's reserve currency. Trump's imposition and reinstatement of tariffs on China and other nations have rattled global market sentiment, contributing to a nearly 10% decline in the dollar's value this year and negatively impacting crypto market capitalization, which fell by 2.9% amid broad sell-offs including in meme and AI-related coins. In the crypto sector, Trump's administration is reversing Biden-era guidance by allowing more freedom for 401(k) plans to include cryptocurrency investments, signaling a more favorable regulatory environment for crypto assets. The Trump family is actively expanding their cryptocurrency ventures, including plans to raise $2.5 billion to build a "Bitcoin treasury," with Trump's sons leading these efforts and promoting crypto at major industry events. Critics warn that these moves prioritize crypto profits over economic stability, while supporters hail the administration as a champion for cryptocurrency's growth. Overall, Trump's trade policies and crypto endorsements are reshaping market dynamics, raising concerns about economic stability and the future role of the dollar and digital currencies.