The sharp weakness of the US dollar value is acting as a positive signal for alternative assets like Bitcoin (BTC), signaling a potential bullish trend in the cryptocurrency market. Experts emphasize that as the dollar weakens, the possibility of Bitcoin's "exponential rise" is opening up.
Niels, co-founder of TedLabs, recently pointed out through his X (formerly Twitter) account that the Dollar Index (DXY) has "entered a free fall state" and has fallen by 11% compared to the beginning of the year, which is the "worst performance in 40 years". The current dollar index is around 97, the lowest since February 2022. In particular, the US government's move to increase the debt limit by about $5 trillion (approximately 6,950 trillion won) is further intensifying the pressure of dollar weakness.
Expectations of interest rate cuts are also fueling dollar weakness. According to the CME FedWatch Tool, the probability of the Federal Reserve (Fed) cutting the benchmark interest rate by 0.25 percentage points on July 30 is currently 19%. Niels strongly recommended "buying and holding tangible assets like Bitcoin" during this macroeconomic transition period.
Cryptocurrency investor and entrepreneur Anthony Pompliano added in a similar context, "As long as money continues to be printed, asset prices will inevitably continue to rise." He has established a company that strategically accumulates Bitcoin as a reserve, translating his skeptical view of fiat currency into action.
Jurrien Timmer, Global Macro Strategy Head at asset management firm Fidelity, analyzed the movements of the dollar and US Treasury market, saying "the global financial order is changing" and that the status of safe-haven assets is shifting to gold and other currencies.
Bitcoin has typically shown a steep rise during dollar weakness periods. During the period from late 2017 to early 2018 when the DXY fell nearly 15%, Bitcoin led the bull market by recording an all-time high, and a similar pattern was observed when the index fell 13% again from March 2020 to mid-2021. As the DXY has fallen nearly 12% in 2025, there are forecasts that this could be a harbinger of a Bitcoin bull market.
Justin Wu, a recent Twitter user and investment analyst, claimed, "People are overlooking the correlation between $DXY and $BTC," and "this decline is likely to unfold in the same pattern as before." He added, "It happened in 2017 and 2021, and the same setup is being prepared for 2025."
With the uncertainty of the global economy and government fiscal policies intertwining, conditions are being prepared for Bitcoin to once again prove its value as an alternative asset. If the dollar value falls further, the Bitcoin market is expected to enter a new golden age with explosive demand.
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