US Dollar Sinks — Is Bitcoin Secretly Plotting Its Global Takeover? 😏

by

What’s whispered in the grove:

  • Mistress Lyn Alden, philosopher of ledgers, sighs: for the United States to steady its balance, a softer, more docile dollar is the only remedy. Imagine a falcon tamed with gentle hands — that’s her vision.

  • Bitcoin and gold, objects venerated by dreamers and hoarders alike, may well become the new altars for those deserting the Church of the Greenback.

  • Sovereign wealth funds and entire nations — ever wily, ever bored — now tiptoe toward Bitcoin, as the dollar’s glorious reign appears a little less everlasting. There’s a dash of schadenfreude in the air.

The American dollar, whose index (DXY) once strutted across the world stage with the haughtiness of a Cossack officer, stumbles now. Its fall isn’t even front-page material anymore. Since 2025’s chilly beginning, the DXY slipped downward by 11%. The world responded with a yawn, perhaps distracted by costlier coffee and cheaper drama. Some ask, in times of chaos, isn’t a softer dollar simply part of the carnival?

Yet, this is no capricious dip. It hints at a long, drawn-out unravelling — an epochal shift in both American and global finance. As Alden writes in her May treatise, a weaker dollar seems less a risk and more a prescription. Perhaps the doctor has been firing blanks for decades! And as the American sun sets over currency hegemony, neutral assets such as gold — and that brash upstart, Bitcoin — glimmer with the subtlety of a bear in a ballroom.

The empire in transition: fading glory and empty pockets

What an enchanting system we’ve built: fractional reserve banking! 💸 Whenever a loan is made, it’s as if the moneylender plucks dollars from behind your ear — magic! But lest we forget: real, hard cash is as rare as an honest politician. Today, the US carries $102 trillion in debt, a sum so vast it begs for poetry. Toss in $18 trillion more from foreigners, and for fun, imagine the derivatives on top. So much debt, so little base money: just $5.8 trillion, barely enough to fund the dreams of a small principality.

“It’s like a game of musical chairs with more than 20 children for every seat,” writes Alden, wistfully. “And the music — as prescribed by the Maestro Fed — must never stop. Or else.”

America, ever the prodigal import addict, gorges on goods, while exporting only its debt and the hope that tomorrow will bail it out. Surplus nations send their dollars back to Wall Street, buying more shares in what is, let’s face it, the greatest financial soap opera of our time. But hold your applause! Whenever dollar liquidity dries, foreign holders offload American assets to pay their bills; this, inevitably, rattles the foundations in Washington.

Recall March 2020: markets froze, panic reigned, and the Fed conjured trillions from thin air — a “wizard move” to rival Merlin. Markets stabilized, inflation soared, and ordinary folks clutched their pockets in despair.

Years of declining industry and widening divisions delivered the political spectacle that is Donald Trump. His tariffs, Alden argues, are unlikely to do much — except perhaps enrage those who manufacture American flags in China. The US must, by necessity, run a trade deficit, ensuring a ceaseless outpouring of dollars. There is only one cure: a weaker dollar and a voluntary retreat from the global throne. But can an empire ever retreat gracefully?

“In my novels — oh, forgive me, in my analysis — I see both the United States and the world’s financial system embarking on a journey so long, even Tolstoy would have lost interest.”

Bitcoin and DXY: Bitter rivals in a Dickensian dance

Bitcoin (BTC) and the Dollar Index waltz in opposite directions. When the dollar flexes its muscles, BTC sulks in a corner, smoking a hand-rolled cigarette. But when the dollar weakens, Bitcoin, like a peasant at a harvest festival, suddenly becomes irresistible.

Look at their charts: April 2018 and March 2022 — DXY rises, Bitcoin slumps. November 2020 — DXY sags, Bitcoin soars, perhaps with a pirouette worthy of Anna Pavlova. And now, in 2025, the DXY falls below 100, and one can almost hear Bitcoin clearing its throat, preparing for a grand aria. Is another rally at hand? What a plot twist! 📉➡️📈

Where shall a clever soul invest, as the dollar’s monologue loses its audience?

In such “times out of joint,” as Hamlet might say (albeit with less exposure to crypto), the wise seek refuge in assets immune to the parlor tricks of central banks. Gold? Of course, it glitters. But then there’s Bitcoin — the enfant terrible. 👶💰

Sovereign hands are stockpiling BTC. El Salvador and Bhutan mine it with zeal, while Abu Dhabi’s Mubadala Investment Co. and the Wisconsin pensioners hold it via ETFs (the cheeseheads, always avant-garde!). Michael Saylor, who surely missed his calling as a nineteenth-century railway baron, invites states and institutions alike to the great Bitcoin banquet. Even Norway’s fund, the world’s whale, secretly nudges the price upward while making cryptic Nordic jokes.

As the dollar slinks away from the global arena, others step up for a dance: the yuan, the dirham, the euro (now puffed up by a 10% gain). Reuters reports yuan payments at record highs, while the ECB, having apparently inherited a printing press from Rotterdam, takes rates down to 2.5%. Is this a new monetary renaissance or simply a new flavor of chaos?

This oft-ridiculed “de-dollarization” is here, unfolding like an overlong Russian novel — and with much better memes. As nations and merchants seek stable, neutral currencies, Bitcoin stands near the buffet table, tie askew, ready to be invited in. The ending? As in all things finance or Russian literature: nobody knows. But it will be dramatic.

Read More

2025-05-08 01:18