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Bitcoin and crypto prices have been left in the dust by gold’s huge rally over the last year (though a massive shock is expected in 2026).
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The bitcoin price has dropped under the closely watched $90,000 per bitcoin level as crisis engulfs the U.S. dollar.
Now, with traders braced for a Federal Reserve game-changer, a “crisis of confidence” in the U.S. dollar has been predicted to see bitcoin catch up with gold.
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“There’s a crisis of confidence in the U.S. dollar,” Kyle Rodda, a senior market analyst at Capital.com, said in comments reported by Reuters. “It would appear that while the Trump administration sticks with its erratic trade, foreign and economic policy, this weakness could persist.”
This week, U.S. president Donald Trump said the dollar was “great” despite it headed for its steepest weekly decline since last April’s “Liberation Day” market turmoil.
Trump’s comments were taken by the market as a signal that dollar selling could intensify ahead of the Federal Reserve’s Wednesday interest rate decision.
“When the person who could jawbone to defend the currency sounds unconcerned, the perceived backstop under the dollar gets thinner,” Anthony Doyle of Pinnacle Investment Management said in comments reported by Bloomberg.
“This may very well be the beginning of the next leg lower in the dollar, and many may not be prepared for it,” added Stephen Jen, founder of Eurizon SLJ Capital.
The fall in the U.S. dollar pushed the price of gold and silver to fresh all-time highs, while bitcoin, which has tried to carve out a reputation as digital gold, remains on the sidelines.
“With U.S. debt levels likely to rise further into the midterm election cycle, as Trump pushes targeted stimulus under a renewed affordability agenda, foreign investors are likely to continue diversifying away from the U.S. dollar,” Markus Thielen, the chief executive of 10X Research, said in an emailed note that described the U.S. dollar as “breaking” and pointing to China beginning to relax its negative attitude toward bitcoin and crypto.
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Forbes Digital Assets
“Gold has been the primary beneficiary of this shift so far, but over time, bitcoin should also benefit, particularly if alternative reserve assets such as gold and silver become increasingly crowded and expensive.”
The bitcoin price has failed to end its downward spiral so far into 2026, though long-term bitcoin price bulls remain confident it will do so eventually.
“While bitcoin’s technical structure remains weak for now, the macro forces taking shape could carry far-reaching implications once a catalyst emerges,” Thielen added, referring to a “larger story is quietly developing in the background. When that spark is finally triggered, the repricing may not be gradual.”