In 2025 USD saw the worst performance since 1973. What challenges does the American dollar face these days?
2025-07-03 19:35:01
Main Idea
The US dollar had its worst start to the year since 1973, influenced by factors such as political actions, national debt, and potential Fed rate cuts, while cryptocurrencies like Bitcoin and stablecoins are playing an increasingly significant role in the global financial system.
Key Points
1. The dollar index dropped by 10.8% in the first half of 2025, marking its worst six-month performance since 2009 and the worst start since 1973.
2. Factors weakening the USD include Donald Trump's policies, growing national debt, and potential Fed rate cuts, similar to the 1973 scenario.
3. The Euro showed 13% growth, reducing dependence on the USD, while the Bretton Woods System collapse in 1973 previously impacted the dollar's role as a reserve currency.
4. Cryptocurrencies like Bitcoin and USD-pegged stablecoins are gaining prominence, with stablecoin issuers becoming major buyers of US Treasury securities.
5. The US is positioning itself as a holder of both the dollar and Bitcoin, with crypto-friendly regulations in 2025 further integrating digital assets into the financial system.
Description
The dollar had the worst start of the year since 1973, analysts say. Its value against other fiat currencies drops as the world’s confidence in the U.S. policies declines. What challenges does the American dollar face these days, and what influences its performance? Table of Contents Poor performance The reasons behind the dollar’s poor performance Do cryptocurrencies debase the American dollar? Poor performance The index used to estimate the USD value against six other currencies (the British p...
Latest News
- ‘If I lose, DeFi dies with me:’ Tornado Cash co-founder doubles down on innocence ahead of trial2025-07-04 07:38:00
- Bitcoin options worth $3B to expire on July 4 — will BTC retrace?2025-07-04 06:42:42
- U.K and Singapore agree to join forces on advancing AI and tokenization2025-07-04 06:41:25
- HSBC Orion to launch MENA’s first digitally native bond with ADX and FAB2025-07-04 06:40:57
- Detroit sues real estate tokenization firm RealToken over 400 blighted properties2025-07-04 06:27:59