Blockchain
Janet Yellen Quietly Admits Grave Fears of US Dollar Collapse as Trump Sets Bitcoin for $4 Trillion Price Surge
US Treasury Secretary Janet Yellen has warned that countries around the world are moving away from the US dollar—as the spiraling $34 trillion US debt pile fuels fears of collapse—while bitcoin and cryptocurrencies are slowly eroding the dollar’s dominance.
The price of bitcoin has skyrocketed in the last year, rising despite a ‘critical’ warning from the Federal Reserveand helped by the bettors who are increasingly convinced that former US President Donald Trump will retake the White House in November.
Now, as Project 2025’s radical policy plan puts bitcoin on a collision course with goldYellen said she fears that U.S. financial sanctions could reduce the dollar’s role in the world as Russia encourages the use of bitcoin and cryptocurrencies.
Register now for free CryptoCodex—A five-minute daily newsletter for traders, investors and cryptocurrency curious that will keep you updated and abreast of the bull run in the bitcoin and cryptocurrency market
US Treasury Secretary Janet Yellen has warned that the US dollar’s dominance will continue to decline as… [+] Russia Turns Toward Bitcoin and Cryptocurrencies Despite Price Fluctuations
AFP via Getty Images
“We have very powerful sanctions that are available because of the important role of the dollar in international transactions,” Yellen said. said U.S. lawmakers this week at the House Financial Services Committee.
“The more we used sanctions, the more countries looked for ways to conduct financial transactions that did not involve the dollar.”
In recent years, the United States has targeted Russia and Iran with severe financial sanctions, with it being accused of using the dollar as a weapon and alienating the so-called BRICS group of emerging countries from the Western financial system.
The BRICS, initially composed of Brazil, Russia, India and China, were later joined by South Africa and then Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE)
iShares MSCI UAE Capped ETF
), are important developing countries that have formed an alliance to increase their power and influence on the world stage.
The U.S.-led Western financial sanctions “will have a certain impact on the international status of the U.S. dollar,” said Zhao Qingming, a Beijing-based financial expert. said China’s Global Times newspaper. “In the short term, the US dollar’s position is expected to remain stable, but over time, its position may weaken.”
Earlier this month, Russia’s central bank encouraged the use of bitcoin and cryptocurrencies to counter Western sanctions imposed over the conflict in Ukraine.
Sign up to CryptoCodex now—A free daily newsletter for cryptocurrency lovers
ForbesProject 2025 Has Set Up Bitcoin for a $16 Trillion Showdown with Gold
The price of bitcoin has fluctuated wildly in recent years, recovering as fears grew over the future of the… [+] US Dollar.
Forbes Digital Assets
“New financial technology creates opportunities for schemes that did not exist before. That is why we have softened our position on the use of cryptocurrencies in international payments, allowing the use of digital assets in such payments,” said Elvira Nabiullina, Governor of the Central Bank of Russia, as they say he said at a financial conference in St. Petersburg.
Fresh fears of a U.S. dollar crash come as some bitcoin and cryptocurrency traders are betting that the price of bitcoin will skyrocket to an all-time high ahead of the U.S. election in November.
In a note dated July 2 view According to The Block, Geoffrey Kendrick, head of forex and cryptocurrency research at Standard Chartered, “a new all-time high for bitcoin in August is likely, then $100,000 by US Election Day,” adding: “The logic here is that both regulation and mining would be viewed more favorably under Trump.”
Kendrick said he expects the price of bitcoin to reach $150,000 by the end of 2024 and $200,000 before the end of 2025, which would give bitcoin a market cap of about $4 trillion.
Trump has emerged as the bitcoin and cryptocurrency community’s favorite candidate, promising to protect people’s right to own bitcoin and being announced as a keynote speaker at the Bitcoin 2024 conference later this month, putting him in stark contrast to the Biden administration’s anti-cryptocurrency stance.