Strong dollar and U.S. Fed policies pose challenges for Bitcoin in 2025

Since Donald Trump’s recent election victory, the U.S. dollar has strengthened by over 3%, driven by robust economic performance and expectations of limited rate cuts from the Federal Reserve, according to CoinDesk, citing Bitwise's European research head, Andre Dragosch. While Trump has expressed support for Bitcoin, the strong dollar, higher yields and geopolitical uncertainty are creating macroeconomic headwinds that could slow Bitcoin's rally.