Dollar’s Demise Could Spark Bitcoin’s Next Bull Run, Standard Chartered Warns

As the greenback stumbles, analysts see crypto’s poster child priming for another moonshot. Here’s why.

The Macro Play: When the Dollar Bleeds, BTC Feeds

Standard Chartered’s currency strategists—normally busy defending fiat—now flag Bitcoin as the hedge of choice against a weakening US dollar. Traders are already front-running the Fed’s next dovish pivot.

Gold 2.0 or Just Another Speculative Frenzy?

While institutional investors quietly accumulate BTC ETFs, retail traders are levering up like it’s 2021. The bank’s note conspicuously omits whether this rally would survive actual rate cuts—or if it’s just another case of ’buy the rumor, sell the news’ in Wall Street’s endless circus.

Bitcoin Set for 2nd All-Time High in 2025? Standard Chartered Says US Dollar Can Make It Happen

In a recent speech, US Vice President JD Vance says the country did not believe that “Bitcoin competes with the US dollar.” Yet, that doesn’t appear to be a perspective shared by many within the finance sector. Specifically, one of the most prominent banks in the world has noted that the two assets have an adverse relationship.

The US dollar index (DXY) has plunged over 10 points since the start of the year, according to TradingView data. Moreover, that is the largest drop since 2022, with all eyes on what that could mean for the finance markets. It could be a benefit to Bitcoin, as Standard Chartered noted that the US dollar’s recent decline may fuel another BTC rally.

“If the economy or financial markets falter, the downside risk to the USD is higher the greater the accumulation of external liabilities,” the bank’s head of G10 FX Research, Steve Englander, told Bloomberg. “If the debt path is not flattened, borrowing terms may become increasingly onerous as risk premia increase the cost of public and private borrowing,” he added.

Essentially, he is stating that the US debt may push foreign creditors to demand higher risk premiums. This WOULD then cause higher treasury yields with a weaker dollar. Altogether, it would weigh heavily on the fortification of US debt.

With the greenback facing increased downside risk, a hedge is a necessity for investors. That is where Bitcoin comes in. “I think Bitcoin is a hedge against both TradFi and US Treasury risks,” Standard Chartered’s Geoff Kendrick told BeInCrypto. Therefore, if the dollar continues to fall, BTC could be in line for another run.