The U.S. dollar plunged nearly 11% during the first half of 2025, marking its steepest six-month decline since 1973, as investors increasingly turned to Bitcoin and gold amid mounting economic and political uncertainties.
This significant currency depreciation stems from multiple pressures, including lingering impacts of Trump-era tariffs and growing concerns over U.S. government debt levels. The dollar’s weakness has accelerated capital rotation into perceived alternative stores of value.
Bitcoin continues gaining institutional validation as a hedge against fiat instability, with holdings now confirmed across more than 130 publicly traded companies’ balance sheets. Simultaneously, gold prices breached the $3,300 per ounce threshold, underscoring robust demand for traditional hedging assets during currency volatility.
Future trajectories for both Bitcoin and gold remain contingent upon two critical factors: regulatory developments providing clearer frameworks for digital assets, and broader shifts in global market sentiment amid ongoing economic challenges.