According to The Kobeissi Letter, gold's share of global reserves has surged to 23% in Q2 2025, marking a 30-year high and doubling its percentage over the past six years. Meanwhile, the US Dollar's share in international reserves has fallen by 10 percentage points to 44%, reaching its lowest level on record. This significant shift in global reserve allocation signals increasing diversification away from traditional fiat currencies, highlighting rising demand for alternative assets. For crypto traders, this trend may support increased interest and capital flows into digital assets like Bitcoin, which are often positioned as non-sovereign stores of value and inflation hedges, especially as confidence in traditional reserves wanes (source: The Kobeissi Letter, June 9, 2025).

According to The Kobeissi Letter, since 1971, the US Dollar has lost 98.94% of its value against gold and the British Pound has declined by 99.42%, highlighting a dramatic erosion in the purchasing power of major fiat currencies (source: The Kobeissi Letter, Twitter, May 22, 2025). This long-term devaluation intensifies the appeal of cryptocurrencies like Bitcoin, which are often positioned as hedges against fiat currency depreciation. For crypto traders, these statistics reinforce the narrative of digital assets as alternative stores of value, especially amid ongoing macroeconomic uncertainties.

According to Michaël van de Poppe (@CryptoMichNL), the continued selloff of the US Dollar in Japan following the local bond market collapse is accelerating the Dollar's decline. This weakening of the Dollar is considered a bullish signal for Bitcoin and various altcoins, as traders often seek crypto assets as alternative stores of value when fiat currencies depreciate. The trend is enhancing trading volumes and volatility in major cryptocurrencies, presenting increased opportunities for short-term and swing traders in the current market environment (Source: @CryptoMichNL, Twitter, May 21, 2025).

According to André Dragosch (@Andre_Dragosch), a decline in the US Dollar combined with a rise in commodity prices typically signals heightened inflation risk. For traders, this scenario historically results in increased demand for inflation hedges like Bitcoin, as fiat currencies lose purchasing power (source: Twitter, May 8, 2025). Monitoring the Dollar Index (DXY) and major commodity price trends is critical for crypto investors seeking to anticipate inflows into Bitcoin and other digital assets during inflationary cycles.

According to Crypto Rover, the US Dollar's current decline, reminiscent of economic strategies from Trump's era, indicates a bullish trend for Bitcoin. This scenario could lead traders to consider Bitcoin as a hedge against potential dollar devaluation. The historical context of fiscal policies and market reactions suggests an increased interest in cryptocurrency investments during such economic conditions, providing a strategic advantage for long-term Bitcoin holders.

According to Crypto Rover, the US dollar is experiencing a sharp decline, leading to an increase in altcoin dominance. This shift indicates that investors are redirecting funds from traditional fiat currency into the altcoin market. Traders should monitor altcoin trading volumes as this trend could present opportunities for profit. Source: Crypto Rover's Twitter.