The Dollar’s Death Spiral: Two Inevitable Forces Driving Its Decline

The greenback’s dominance is crumbling—and these twin catalysts will accelerate its fall.

1. DeFi’s Silent Coup: Dollar-pegged stablecoins now settle more daily transactions than Visa. Traders bypass SWIFT entirely, opting for crypto rails that never close.

2. BRICS’ Nuclear Option: The gold-backed trade settlement system rolling out in 2025 makes dollar sanctions obsolete. (Take that, Treasury Department.)

Bet against the dollar at your own peril—unless you enjoy watching monetary empires burn.

2 Reasons Why the US Dollar May Continue to Fall

1. Waning Greenback Demand in Asia

Per a recent Reuters report, Asian currencies are gaining immense traction as of late, pushing the USD to explore new lows in the process. A massive greenback selloff has been triggered in Asia, resulting in record rallies of other currencies like the Taiwanese dollar. If the selloff continues, this development would be suggestive of wobbling the US dollar’s stance in Asia, which could further cause fluctuations in the American currency’s value and stance.

said Gavekal’s Gave.

Furthermore, the report highlights how Trump’s aggressive tariff policies have weakened the faith of investors in American assets, including the USD.

said Gary Ng, senior economist at Natixis.

Rise of Gold, Bitcoin, and Other Currencies

The geopolitical instability is causing investors to adopt a cautious stance. This stance is compelling investors to explore alternate assets like gold and Bitcoin, helping them claim new price spots in the process. There was a time when the US dollar reigned supreme and had no competitors to fight with. In the present world, Trump’s fierce tariff antics, coupled with the dollar weaponization, have made the US dollar weak, multiplying its enemies on the go.

This narrative has led investors to consider other leading assets/currencies, bringing them to a similar pedestal as that of the USD. Several new currencies, including the Taiwanese dollar, Singapore dollar, and yuan, are now rising in value as investors continue to explore them, ditching USD in the process.

Per Goldman Sachs, USD may further counter decay, a decomposition of sorts, in the NEAR future.

Cahill writes.