Bitcoin and Ethereum prices rose after reports of a US dollar collapse spread to the market. Recent data shows the US dollar has fallen to a four-year low, raising concerns about the strength of the world’s dominant reserve currency. as dollar becomes weakermarket players have begun to shift their attention to alternative assets such as precious metals and digital currencies, including BTC, and the trend is increasing. Seen as a potential hedge against rising inflation and currency depreciation.
US dollar falls to four-year low
A new report from Bloomberg highlights the relentless decline in the US dollar index (DXY) in recent weeks, with prices falling further following President Donald Trump’s comments on the currency’s performance. source of information reveal President Trump said the dollar is “doing well” despite the continued decline.
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Traders interpreted the president’s seemingly indifferent response to the dollar’s decline as a signal that the dollar’s decline could continue and cause further selling pressure. Data from web-based stock market research platform Finviz show At the time of writing, US dollar index crashed It rose to 95.92 from its previous level near 100. mark In particular, it was the lowest level in almost four years since 2022.
In addition, Bloomberg reported The dollar spot index also recorded its lowest four-day decline since President Trump announced new tariffs in April 2025. Traders in the $9.5 trillion-a-day currency market are also betting the dollar could fall further. US policy risks Emphasizes the world’s major base currencies.
While the US dollar index is falling, cryptocurrencies such as Bitcoin and Ethereum are rising. BTC price rises In the past 24 hours, Ethereum has risen more than 3% to over $3,000. This simultaneous rise in USD weakness and cryptocurrencies suggests that investors may find themselves in the following situation: Shift capital to risk-on assets.
Recently market analyst “Master of Crypto” outlined In a post on X, he explained some of the reasons behind the continued decline in the US dollar weakness. budget deficitthe US dollar remains near recent lows due to the Fed’s challenge of balancing inflation control with a stable job market, stable bond supply, and currency hedging activities. He said holding idle cash poses a significant risk for investors in this type of market environment.
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Possible impact on Bitcoin and Ethereum prices
Historically, periods of weaker U.S. dollars often Coinciding with the rise in Bitcoinand other cryptocurrencies. When the dollar declines, investors may seek alternative assets to preserve value. This could cause many people to increase the demand for Bitcoin and Ethereum. Alternative store of value and risk-on assets.
Although this correlation is not a clear indication of the cryptocurrency’s upside potential, analysts prefer the “milk road macro”. suggest We believe that a weaker dollar could support a broader recovery in the crypto market. He said a weaker dollar will lead to capital inflows into precious metals such as gold and silver. Shortly thereafter, this same capital Expected to rotate to BTCwhich could prompt a price rebound.
Featured image created by Dall.E, chart on Tradingview.com
