The US dollar's weakening (DXY), down 11% since early 2025, signals a potential long-term shift in both the US economy and global monetary order. Market analyst Lyn Alden argues that a controlled retreat from dollar dominance might be necessary for stabilizing the financial system. Currently, the US holds around $102 trillion in dollar-denominated debt while only $5.8 trillion exists in base money. Alden highlights the risks of this imbalance, emphasizing the need for alternatives as dollar liquidity tightens. Bitcoin and gold are positioned to benefit from de-dollarization due to their neutrality and fixed supply. Historically, Bitcoin's price movements have shown an inverse correlation with the DXY, suggesting a potential rally for Bitcoin as the dollar continues to weaken. Additionally, several nations and sovereign wealth funds are increasing their Bitcoin exposure amidst this transition. The ongoing de-dollarization reflects a significant shift in global trade dynamics, with countries exploring stable alternatives for international transactions.

Source 🔗