Is the US Dollar’s Safe-Haven Status Collapsing? The Future Looks Bleak
The greenback's invincibility is cracking—and the financial world is scrambling.
De-dollarization accelerates as trust erodes
Central banks are dumping USD reserves at record pace while Bitcoin hits new all-time highs. Gold? Soaring. Treasury yields? Volatile as a meme coin. The 'risk-free' asset suddenly looks riskier than a leverage-heavy crypto portfolio.
Geopolitical tremors shake foundation
BRICS nations are rolling out alternative settlement systems. Even European allies are quietly diversifying away from dollar dependency. Meanwhile, the Fed keeps printing like it's 2020—because some habits die hard.
The cynical take
Wall Street still claims this is a 'healthy correction.' Just like they called the 2008 subprime crisis 'contained.' Meanwhile, decentralized finance protocols are eating traditional banking's lunch—with extra spicy volatility on the side.
The dollar won't vanish tomorrow. But the writing's on the blockchain.
JPMorgan Outlook, Falling Dollar, And De-Dollarization Risk For More Countries
Policy Shock Undermines Dollar Confidence
The US dollar future turned sharply negative following Trump’s “Liberation Day” tariff announcement on April 2nd, which actually triggered an immediate 10% currency decline. This policy shock broke the dollar’s traditional correlation with US interest rates, and it’s signaling some deeper structural problems that weren’t there before.
Christian Gattiker and David Meier stated:
The erratic nature of current policymaking continues undermining confidence in US assets, along with the recently passed “One Big Beautiful Bill Act” that’s cementing unsustainable fiscal deficits. These deficits are putting pressure on the Federal Reserve to lower rates, which further weakens the US dollar future outlook.
JPMorgan Identifies Structural De-Dollarization
JPMorgan’s research is also revealing some concerning trends that are threatening the US dollar future across multiple sectors. While the dollar still maintains 88% of foreign exchange volumes, central bank reserves have actually fallen to two-decade lows right now.
Luis Oganes had this to say:
Medium-Term US Dollar Forecast Remains Negative
The US dollar future through 2026 looks increasingly bleak as multiple factors are converging. The US “twin deficit” structure creates natural downward pressure when investment inflows fail to compensate for structural outflows, and this is happening more frequently now.
Alexander Wise stated:
De-dollarization is most visible in commodity markets, where energy contracts are increasingly using non-dollar denominations. This directly challenges the petrodollar system that has been supporting the US dollar forecast for decades.
