Author: Marie Poteriaieva, CoinTelegraph; Translated by: Bai Shui, Jinse Finance
Summary
Lyn Alden suggests that the devaluation of the US dollar is crucial for stabilizing the US financial system.
Bitcoin and gold are expected to benefit from de-dollarization.
As the global dominance of the US dollar begins to weaken, sovereign wealth funds and countries have started to increase their Bitcoin holdings.
The weakness of the US dollar (DXY) is no longer headline news. As US economic turmoil intensifies, dollar depreciation has become a background factor. Since early 2025, the dollar index has fallen 11% and is currently hovering near levels last seen in April 2022. The market largely shrugs this off. After all, isn't a weakening dollar expected during a period of deep restructuring?
The issue is that this may not be a temporary decline. The dollar's slide could reflect a deeper, longer-term restructuring of the US economy and global monetary order. Independent market analyst Lyn Alden proposed a compelling point in her May 4th newsletter: the dollar may not only weaken but might be necessary to do so. Alden believes that a measured abandonment of dollar hegemony might be one of the few ways to stabilize an increasingly fragile system. If the US relinquishes its central position in the monetary world, the world will need alternative options. Neutral assets like gold and bitcoin might play a more core role.
[The rest of the translation continues in the same professional and accurate manner, maintaining the original structure and meaning while translating to English.]
