US Dollar Index Hits Lowest Point in Three Years Amid Gold’s Record Surge and Bitcoin Breaching $87,000

The US Dollar Index (DXY) has experienced a significant decline, reaching its lowest level in three years as investors shift towards alternative assets. Concurrently, gold has achieved an all-time high (ATH), reflecting heightened market uncertainty and a flight to safe-haven assets. In the cryptocurrency space, Bitcoin (BTC) has surged past the $87,000 mark, underscoring its growing appeal as a hedge against fiat currency weakness. This market dynamic highlights the interplay between traditional financial instruments and digital assets in the current economic landscape.

DYX Down 10%, Gold Up

The Index has retreated more than 10% since the beginning of this year as Trump’s trade tariffs have weakened the currency alongside investor sentiment for the United States.

However, it saw a similar decline between October and December 2022 when it fell from 114 to 101 as the greenback depreciated.

This dip has been deeper, however, with more pain predicted if trade deals are not made fast.

The euro is above $1.15, and the dollar has also fallen below 141 Japanese yen and 0.81 Swiss francs in a 14-year low, observed Schiff.

Gold is up over $50, hitting a record high of $3,380. The euro is above $1.15. The dollar has also fallen below 141 Japanese yen and .81 Swiss francs (a new 14-year low, just 3% above a record low.) The dollar Index is below 98.5, a new three-year low. This is getting serious.

— Peter Schiff (@PeterSchiff) April 21, 2025

Meanwhile, gold prices have hit another all-time high of $3,380 per ounce, he added. The usually slow-moving precious yellow metal has gained a whopping 29% in dollar terms since the beginning of this year as investors flock to SAFE havens amid the currency crisis.

BTC Hits 4-Week High

Meanwhile, Bitcoin appears to have decoupled from tech stocks and realigned with gold, surged 2.5% on the day to reclaim a four-week high of $87,550 during the Monday morning trading session in Asia.

Bitcoin appears to be holding gains, trading at $87,400 at the time of writing rather than bouncing back down off resistance. However, it needs to clear the $88,500 level it reached in late March to see a larger move into the $90K range.

“I’m open to the possibility that it may be finally happening. Bitcoin taking on its final form. Either that or somebody is levering up on longs for some other reason,” said economist Alex Krüger.

He also suggested that investors in Asia were viewing Bitcoin as a safe haven, whereas those in the US were speculating with it as a risk asset.

Asians buying bitcoin as a safe haven, Americans trading bitcoin as a risk asset?

(Asia in yellow, US in blue) pic.twitter.com/6cSTL1094y

— Alex Krüger (@krugermacro) April 21, 2025