De-Dollarization Goes Nuclear: Global Capital Flees US Dominance in 2025
The dollar's iron grip is slipping—fast. As de-dollarization accelerates, capital exits the US system like a bank run in reverse. Here's why the financial world's playing musical chairs… and Washington's left scrambling for a seat.
The Great Unwinding: Sovereign funds, institutional players, and even corporate treasuries are quietly diversifying away from USD-denominated assets. No big announcements—just cold, hard balance sheet math.
Cryptocurrency's Silent Coup: Bitcoin and stablecoins emerge as prime beneficiaries, with on-chain data showing record capital inflows into digital asset vehicles. TradFi's loss is DeFi's gain.
The New Power Brokers: BRICS nations aren't just talking about alternative settlement systems anymore—they're live-testing them. Petro-yuan? Gold-backed tokens? The toolbox is expanding.
Funny how 'exorbitant privilege' works—until it doesn't. Maybe printing endless dollars wasn't the infinite money glitch after all. (Cue the world's smallest violin for Wall Street.)
Capital Is Moving Away From US Assets: What It Means
A new report by the Union Bank has brought forth a new compelling hypothesis, undermining reasons for the US dollar’s fall. The bank stated that the US dollar’s plunging value status can primarily be attributed to the global capital outflows, which have now started to take a toll on the US dollar.
The report shared
The report further stressed the US Federal Reserve’s stance on policymaking as interest rate cuts, as a crucial way to alleviate some pressure on the dollar.
The Federal Reserve has lately been adopting a cautious stance, with dovish comments. The report further shared how keeping interest rates steady can ultimately take a toll on the USD’s global stature.
However, a greater emphasis was given to the dollar’s decline, driven primarily by the shifting of global sentiment. Interest in US assets seems to be declining, spurred by a variety of external factors, including Trump’s policies on trade and war. The report reiterated a similar sentiment, adding how the de-dollarization wave is crashing hard on the dollar, weighing it down a notch in recent times.
Dumping of US Assets on the Rise
Mirroring the facts in the report, several nations, including China, have reportedly been diversifying away from the US dollar. This MOVE is indicative of a buildable de-dollarization wave. The one that is capable of derailing the US dollar in the long run.
Speaking statistically, the share of US Treasury holdings in total Chinese FX reserves has fallen dramatically by 15% since 2016.
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China is diversifying its currency reserves out of the US Dollar:
The share of US Treasury Holdings in total Chinese FX reserves has declined by ~15 percentage points since 2016, to ~22%, NEAR the lowest in at least 15 years.
Over the same period, gold's share has risen ~5… pic.twitter.com/uFa5bQTucg
