USD: Political shifts weigh on greenback – DBS
Source Fxstreet
DBS Group Research economist Philip Wee argues that recent political developments in the United States are creating downside risks for the Dollar. He highlights how President Trump’s State of the Union and a key Supreme Court ruling have weakened prior policy support pillars for the USD, shifting global trade dynamics and undermining the administration’s leverage-based tariff strategy.
SOTU and SCOTUS pressure Dollar outlook
"US President Donald Trump’s State of the Union (SOTU) address presents downside risks for the USD."
"The administration has shifted from a position of "unilateral strength" to "defensive campaign management," undermining the greenback’s previous support pillars."
"First, the SOTU confirmed that the administration has entered a pre-election "campaign mode," prioritizing domestic economic stability over geopolitical brinkmanship."
"Second, the Supreme Court’s 6-3 ruling on February 20 has fundamentally undermined the administration’s most potent trade weapon."
"Hence, global trade dynamics have shifted from coercion to waiting."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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Notably, Bitcoin is not alone in its struggles, as Ethereum and Solana have also recorded declines of 7.95% and 28.3%, respectively, since the start of the year, while numerous altcoins have faced even steeper losses.
Looking ahead, questions linger regarding the viability of the four-year cycle thesis, particularly given the increasing institutional support and regulatory frameworks now in place in the crypto landscape. Matt Hougan, chief investment officer at Bitwise, remains optimistic, suggesting a potential Bitcoin resurgence in 2026 driven by the “debasement trade” thesis and a broader trend toward increased adoption of stablecoins, tokenization, and decentralized finance. Hougan emphasized the soundness of the underlying fundamentals, pointing to a positive outlook for the sector in the longer term.
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