The U.S. dollar has plummeted against the euro since the beginning of 2025, shedding more than 12% of its value.
This sharp decline, far from being merely a cyclical adjustment, appears to signal something deeper: a rapid shift in the global economic landscape.
As markets begin to question the stability of the U.S. economy, they have also started to discount the dollar, sending it lower and triggering a vicious cycle, with the greenback losing value at a pace faster than we are accustomed to.
This depreciation has been particularly visible in the EURUSD pair for several months.
The aggressive trade policies of the Trump administration — marked by increased tariffs and pressure on the Federal Reserve — have further eroded international market confidence.
The OECD has revised its U.S. growth forecast for 2025 downward to 2.4%, from its earlier estimate of 3.1% in November 2024.
To put this in perspective, that is the lowest forecast we could find from any institution — and it’s also the most recent projection for U.S. growth for 2025.
The damaging effects of the Trump administration’s protectionist measures are now becoming apparent in OECD predictions.
Meanwhile, much of the capital that typically flows into the U.S. is now likely to be redirected toward Europe.
Cryptocurrencies lying in wait: toward a redefinition of money
This climate of monetary instability and diminishing confidence in the dollar has allowed cryptocurrencies to gradually establish themselves as a credible alternative, especially among financial institutions.
What was once viewed as a speculative gamble has evolved into an asset class that now features in the long-term strategies of major banks, investment funds, and asset managers.
The emergence of regulated stablecoins, the approval of spot Bitcoin ETFs, and plans to integrate blockchain into interbank payment systems all signal this quiet but irreversible shift in the global monetary landscape.
The rise of cryptoassets is placing additional pressure on the dollar, which struggles to maintain market confidence amid U.S. political tensions and a budget many see as unsustainable for the foreseeable future.
A potential freefall of the dollar could deliver a major win for crypto — an outcome never envisioned in Satoshi Nakamoto’s original Bitcoin framework.
However, any potential Bitcoin price surge would still depend on continued dollar depreciation to sustain its role as a hedge.
More than ever, the dollar is being tested both symbolically and functionally.
As markets examine every Federal Reserve decision and every statement from the Trump administration, they are asking a key question: by the end of this term, will the dollar be able to restore the global confidence it once enjoyed?
If the answer is no, then it will not just be cryptocurrencies that advance.
It could mark the beginning of a new global monetary order—one that, in some respects, may replace the current system.
Also Read: S&P Report: The US Dollar Is Primed To Weaken Further
Visit the Homepage ⬅️ for our extensive library of news, or read news for you below.
About The Author
