Bitcoin's recent surge, reaching a new all-time high of $111,000, has sparked renewed interest in its potential for further growth. Standard Chartered Bank suggests that a continued decline in the US dollar could be a significant catalyst for another Bitcoin rally, highlighting an inverse relationship between the two assets amidst global economic shifts.

US Dollar's Decline and Bitcoin's Rise

The US dollar has experienced a notable downturn in 2025, reaching three-year lows due to a combination of macroeconomic pressures and geopolitical tensions. This weakening of the greenback, evidenced by a more than 10-point plunge in the US dollar index (DXY) since the start of the year, is the largest drop since 2022. Standard Chartered Bank posits that this decline could directly benefit Bitcoin, potentially fueling another rally for the cryptocurrency.

Standard Chartered's Perspective on Dollar Weakness

Standard Chartered analysts have articulated a clear connection between the US dollar's struggles and Bitcoin's potential. Steve Englander, head of G10 FX Research at Standard Chartered, explained that if the US economy or financial markets falter, the downside risk to the USD increases, especially with growing external liabilities. He warned that an unaddressed debt path could lead to increasingly onerous borrowing terms due to higher risk premia, ultimately weakening the dollar and the fortification of US debt.

Bitcoin as a Hedge Against Traditional Finance Risks

Geoff Kendrick of Standard Chartered views Bitcoin as a crucial hedge against both traditional financial (TradFi) and US Treasury risks. This perspective suggests that as the US dollar faces increased downside risk, investors may turn to Bitcoin as a necessary alternative to protect their assets. The bank's analysis implies that a continued fall in the dollar could indeed set the stage for another significant run for BTC.

Key Takeaways

• The US dollar has reached three-year lows in 2025, with its largest drop since 2022.
• Standard Chartered Bank suggests that the dollar's decline could fuel a new Bitcoin rally.
• Macroeconomic pressures and geopolitical tensions are contributing to the dollar's weakness.
• Bitcoin is increasingly seen as a hedge against traditional financial and US Treasury risks.
• A continued weakening of the US dollar could lead to another all-time high for Bitcoin.

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