Bitcoin Soars Past US$1,000 Amid Dollar’s Worst Q1 in 30 years
President Trump’s mission to make America great again has been met with a lot of protests and other obstacles. One of the more pressing concerns is the current value of the US Dollar, as the national currency is off to a bad start. In fact, it is the US Dollar’s worst start to a year in 30 years. Not entirely surprising considering what has been said in the media so far, but a troublesome development nonetheless
A Red Chart For The Greenback In 2017
It is not entirely surprising to see the US Dollar struggle to retain its current value, after a very bullish 2016. With the US Dollar making all other main currencies look bad in 2016, things were looking very promising. Interestingly enough, the financial sector has a way of striking back sometimes. As a result, the US Dollar has seen a significant decline ever since Donald Trump took the seat of power in the united States.
To be more precise, Trump’s complaints, harsh language, and seeming unwillingness to work together with other countries has sent the US Dollar spiraling downward. The with strong Dollar being blamed an “economy killer”, it was only a matter of time until the value would start to retrace. That is exactly what happened in January of 2017, with the US Dollar slipping by 2.6%.
To put this into perspective, 2017 marks for the worst first quarter for the greenback in three decades. Moreover, it appears this downward trend will continue for the foreseeable future. Compared to its recent price peak, the US Dollar already lost 4% in value. That is a rather steep amount, but it is also only a sign of what is yet to come. Further declines for the US Dollar are not out of the question at this stage.
Deliberately trying to bring down the value of the US Dollar is frowned upon. In fact, some speculate Donald Trump and his team of advisors are committing verbal currency manipulation. By talking down the greenback, they are manipulating the US economy without resorting to financial means directly. Investors are paying close attention to these developments, as other warning signs for future US Dollar declines are appearing as well.
Donald Trump promised a stimulus once he took the seat in the Oval office, yet it seems doubtful he will go through with that plan. Infrastructure spending and tax cuts will take longer than initially assumed, resulting in little to no benefits to the US economy and US Dollar. Moreover, Trumps’ trade policy continues to raise far more questions than answers at this stage.
While all of this is happening in the United States, the bitcoin price continues to soar. Surpassing the US$1,000 mark for the first time in a few weeks, it is evident alternative assets and investment options remain very popular. Global economic turmoil all over the world affects all traditional currencies and assets, whereas bitcoin does not suffer from those issues. In fact, bitcoin has proven to be remarkably stable.
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