Once primed for its supremacy and dominance, the US dollar is now standing on a pedestal where its hegemony is being questioned. With the rise of gold and cryptocurrency, sectoral dominance is weakening the US dollar’s stance. Several factors are at play that are hampering the US dollar’s collective authority.
With the rise of BRICS and the multipolar currency concept, the dollar is now encountering conflictive elements gnawing from all sides.
Also Read: Gold Attracts ‘Strong Buy’ Call: Forecast Suggests Price To Hit $2,700
Rise of Gold and Crypto: What Does This Mean for the Dollar?
Gold prices are breaking a new price threshold. The weak US data, followed by the anticipation of potential interest rate cuts, are bolstering the price of gold.
Per Middle East Economy, “spot gold saw an increase of 0.39 percent to $2,156.55, after hitting an all-time high of $2,161.09 earlier in the session. Meanwhile, U.S. gold futures saw a 0.21 percent increase to $2,162.75.”
The Federal Reserve’s possible rate-cut scenario has sparked a frenzy among the US economic strata. The weak economic data metrics have further pushed the US dollar to take a dip, bolstering gold’s price momentum for the seventh consecutive day.
Also Read: BRICS: Bank of America Issues Warning of a US Dollar Collapse
Cryptocurrency Surges and Dollar Dips: What’s Happening?
The newest development that’s pushing the US dollar to spiral further down the line is the latest warning issued by the Bank of America.
The Bank of America has shared how the US economy is nearing collapse with debt rates rising at a record pace.
“The US national debt is now growing by $1 trillion every 100 days since 2023. If they come up with plans for large tax cuts or another big fiscal stimulus, the markets could rebel, interest rates could just spike right there, and we would have a crisis in 2025. It could very well happen.” Forbes article later noted.
This could trigger an economic shutdown, leading the dollar to solidify its demise.
Similarly, the rising debt rates have compelled several analysts on X to project how Bitcoin could have helped the US stabilize its debt rates.
Noting a similar tone, analyst Brian Krassenstien shared how BTC could have changed the US economy’s debt narrative.
“Just think… If the US Treasury bought $9 trillion in Bitcoin 15 months ago, we’d have a $4 trillion surplus right now instead of a $34 trillion debt.”
Dubbing it a paradigm shift, Krassenstien further shared how the economic and financial domains are currently undergoing a dynamic shift.
“As Bitcoin approaches a record high against the US dollar, one has to wonder if we are undergoing a paradigm shift in global currency.”
Bitcoin Poised to Reach $300,000?
Amid the calls for de-dollarization strengthening, Robert Kiyosaki has shared how he believes BTC can achieve new price levels.
Forecasting another staggering price metric for the cryptocurrency, the rich dad, poor dad author shared how he thinks Bitcoin will break the $300,000 threshold soon.
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