How Much Is BTC To USD? Trump Could 'Replace' US Dollars To Bitcoin As Crypto Reaches All Time High

Bitcoin has reached unprecedented levels in 2025 amid a wave of pro-cryptocurrency initiatives in Washington. The cryptocurrency's valuation recently crossed the US$123,000 mark, fuelled by growing institutional investment, favourable legislation, and increasingly vocal support from the White House.

The rising price has prompted renewed speculation about Bitcoin's future role in global finance. Among the most striking developments is President Donald Trump's suggestion that the US dollar could eventually be replaced by Bitcoin. While such a move remains speculative, the political rhetoric signals a significant shift in the way American policymakers view digital assets.

Bitcoin's Rapid Rise

Bitcoin surged past US$123,000 (about £91,500) this week, marking an increase of more than 30 per cent since the start of the year. The rally has been driven by a series of legislative wins in Congress, including the Digital Asset Market Clarity Act and the Genius Act. These were passed during a period informally referred to as 'crypto week', where multiple blockchain-related proposals gained traction, according to Financial Times.

Institutional confidence grew after President Trump signed an executive order in March 2025 establishing a Strategic Bitcoin Reserve. This fund, backed by government-held assets seized in criminal investigations, signals the federal government's growing acceptance of Bitcoin as a strategic asset. The launch of spot Bitcoin exchange-traded funds (ETFs) and wider market adoption have further solidified Bitcoin's position as part of the mainstream financial ecosystem, reported the New York Post.

Trump's Pro-Crypto Strategy

Legal analysts say President Trump's second term is ushering in a pro-crypto regulatory shift. His administration has created the President's Working Group on Digital Asset Markets and appointed industry-aligned figures like David Sacks as 'Crypto and AI Czar'.

The Securities and Exchange Commission launched a 'Crypto 2.0' task force, while the Commodity Futures Trading Commission is set to expand its role as Congress considers reclassifying most cryptocurrencies as commodities. These moves mark a rollback of the previous administration's enforcement approach.

Paul Solman, a journalist for PBS in the United States, said Trump may believe that Bitcoin 'will gradually replace currencies like the dollar'. While no formal policy has been announced, the Strategic Bitcoin Reserve positions Bitcoin as a sovereign-held asset, comparable to gold in function.

A recent study from Northumbria University found that cryptocurrency has the potential to disrupt traditional banking, affect credit markets, and reshape global reserve currency dynamics. Analysts also noted that while consumer use of crypto in retail finance could grow, significant legal and operational risks remain.

Volatility Remains a Concern

Despite its remarkable rise, Bitcoin remains highly volatile. Bitcoin's annualised volatility exceeds that of global equities by over four times. According to Fidelity Digital Assets, it has experienced multiple drawdowns of 50-80% in the past decade.

Economists also warn that Bitcoin lacks the fundamental economic characteristics, such as stable supply mechanisms and central governance, that underpin traditional fiat currencies. Replacing the US dollar would require extensive legislative change, coordination with the Federal Reserve, and international consensus.

While Bitcoin's rise to over US$120,000 reflects increasing investor confidence and growing institutional acceptance, its future as a replacement for the US dollar remains speculative. President Trump's supportive stance has undoubtedly elevated Bitcoin's visibility in US policy circles, but significant economic, legal and logistical barriers persist. For now, Bitcoin appears set to coexist with traditional currencies.