US Dollar’s Worst Year Since 1973 Becomes the Catalyst for Bitcoin’s Rise

Key Points

1. The US Dollar Index (DXY) plunged about 10.8% in the first half of 2025, creating a tailwind for hard assets such as gold and Bitcoin.

2. The decline in the dollar is attributed to concerns over US fiscal policy and eroding confidence in its long-term purchasing power.

3. Gold has surged alongside the dollar's drop, climbing above $3,300/oz, supported by safe-haven demand and the rise of cryptocurrencies.

4. About 130 publicly traded companies now hold a combined $87 billion in Bitcoin, and countries like El Salvador, Bhutan, and Kazakhstan are adopting cryptocurrencies.

5. A weakening dollar historically benefits Bitcoin, as seen in 2020 when Bitcoin rallied from approximately $10k to $60k following a dovish pivot by the Fed.