NH Investment & Securities analyzed on the 11th that the influence of the dollar will decrease and the value of virtual assets will increase due to risks stemming from U.S. President Donald Trump.
Seongwook Hong, a researcher at NH Investment & Securities, explained, "Bitcoin was created as a hedge against fiat currency," adding, "The deterioration of trust in the dollar, the leading fiat currency, leads to an increase in Bitcoin's value."
He also evaluated that President Trump is helping Bitcoin's dream of the dollar's collapse. NH Investment & Securities identified Trump-related risks that weaken the dollar's influence as ▲failure of debt ceiling negotiations ▲U.S. Treasury debt restructuring ▲undermining the independence of the Federal Reserve (Fed) ▲Trump's third term ▲U.S. trade and trade deficit reduction.
He stated, "Although the X-date is approaching, there has been no progress in bipartisan debt ceiling negotiations, and there are even rumors about Trump's restructuring of U.S. Treasury debt," adding, "Trump's continued pressure on the Fed and hints at a third term are also serious threats to U.S. governance."
He further explained, "Although indicators related to a U.S. government default have not yet been reflected, default noise could arise as it did in 2011, 2013, and 2023."
He predicted that if the dollar's influence diminishes, the value of Bitcoin as an alternative means will increase. He said, "If the dollar, the key currency, is shaken, demand for other stores of value will arise," adding, "Bitcoin and gold, as alternative stores of value, which possess the shortcomings of the dollar but are inferior to other fiat currencies, are expected to benefit significantly."
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