Summary
An ex-Bank of America official foresees further downside pressure on the US dollar in the few months.
The US Dollar Index has already decreased by more than 9 per cent in the year.
Weakening dollar can be a positive development to Bitcoin and gold as assets whose values are measured in dollars.
Jin Su, the President in B of A, cites tariffs that Trump had raised as a factor.
There is uncertainty in the market; Bitcoin regarded as a risky asset, whereas gold is still perceived as a safe haven.
What US Dollar Pressure Means to Bitcoin and Gold
The Fall of US Dollar; The Long-term View:
Key Word: Dollar Depreciation
The drop in the US dollar might not be a mere short term dip but it is possible that it will influence the global markets in the near future. Based on recent discoveries, the US Dollar Index is selling at 98.86 mark, marginally down by more than 9 percent in the given year. The following economic data and the tariff polices by Trump are contributing significantly towards this depreciation.
Professional Opinion: Jin Su, the Bank of America explains
According to Jin Su, one of the Presidents in Bank of America (BofA), who spoke to Watts in an email interview, asserted that: the US dollar will possibly decline even further during summer because trade policies currently occurring will be a significant cause.
“President Donald Trump’s tariff decisions have already impacted the dollar value adversely,” said Jin Su.
The impact of a Weak Dollar on Bitcoin and Gold
On falling of the US dollar the dollar-denominated assets are usually more desirable. That comprises of Bitcoin and gold.
Gold has always been regarded as a haven in times of uncertainty in the market.
Bitcoin, although very risky, is becoming an inflack against fiat inflation.
The historical record is not all in favor though. In April when Trump increased tariffs, the price of Bitcoin dipped on the contrary, indicating that market behavior could not be easily predicted.
- Keep track of the US Dollar Index, and the pronouncement of tariffs.
- Monitor ISM data and the Dallas Fed economic index which are weaker.
- Ponder on diversification on safe assets such as gold and growth assets such as Bitcoin.
External Resources:
- US Dollar Index Data – TradingView (DoFollow)
- Gold and Bitcoin Market Analysis – CoinDesk (DoFollow)
| Asset | Risk Level | Common Use |
|---|---|---|
| Gold | Low (Safe Haven) | Crisis hedge |
| Bitcoin | High (Volatile) | Inflation hedge |
Link Suggestion:
- Read our Basic introduction to Bitcoin Investment
- Top 5 Gold Investment Idea in 2025
Conclusion
The continued fall in the value of the US dollar has the potential to restructure the attitudes of investors across the markets in the world. As gold still remains the safe haven of choice, Bitcoin provides another fantastic, but more unstable hedge. When analysts such as Jin Su are predicting yet another round of dollar weakness, being up to date and balanced is becoming more important than ever.