Janet Yellen Acknowledges Concerns Over U.S. Dollar Decline While Trump Boosts Bitcoin for Potential $4 Trillion Value Increase

U.S. Treasury Secretary Janet Yellen has expressed concerns that countries worldwide are shifting away from the U.S. dollar due to mounting fears of collapse triggered by the $34 trillion U.S. debt burden, as digital currencies like bitcoin and crypto gradually erode the dollar’s supremacy.

The value of bitcoin has surged in the past year, defying a cautionary warning from the Federal Reserve, supported by speculators who are increasingly confident in former U.S. President Donald Trump’s potential return to power.

Presently, Yellen is apprehensive about the impact of U.S. financial sanctions on the dollar’s global role as Russia advocates for the adoption of bitcoin and crypto, aligning with the ambitious Project 2025 policy that sets up a potential clash between bitcoin and gold.

Yellen emphasized the potential repercussions of sanctions on the dollar’s global status during a recent House financial services committee session, highlighting a trend where countries seek alternative financial channels to avoid dollar transactions.

Recent financial sanctions imposed by the U.S. on Russia and Iran have led to accusations of weaponizing the dollar, prompting the Brics group—comprising Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates—to distance themselves from the western financial system to enhance their collective influence.

Zhao Qingming, a financial expert based in Beijing, anticipates a gradual decline in the dollar’s international standing due to western sanctions, with Russia’s central bank actively endorsing the use of digital assets to counteract Western sanctions related to the Ukraine conflict.

As traders speculate on a potential surge in the bitcoin price before the U.S. election in November, Standard Chartered’s Geoffrey Kendrick foresees bitcoin hitting $100,000 by election day and reaching $150,000 by the end of 2024, with a projected market capitalization of $4 trillion by 2025.

Trump’s favorable stance on bitcoin has resonated with the crypto community, positioning him as a preferred candidate due to his commitment to safeguarding individuals’ bitcoin ownership rights, in stark contrast to the Biden administration’s anti-crypto stance.