- The US Dollar Index (DXY) has dropped to 99.783, signaling reduced trust in the US dollar.
- This means alternative assets like BTC could experience a bull run, yet BTC has not rallied.
- Peter Schiff says Bitcoin has failed as a safe-haven asset during this dollar crisis.
The U.S. Dollar Index (DXY), which represents the strength of the US dollar against foreign currencies and cryptocurrencies, has dropped below 100 for the first time since July 2023. This means a weaker dollar is typically seen as a bullish signal for alternative assets like Bitcoin, stocks, gold, etc.
The major reason behind the DXY plunge could be President Trump’s tariffs on all countries, especially an astonishing 125% tariff on China. In retaliation, China’s central bank has instructed state-owned entities to “reduce dollar purchases.” Further, the country increased its tariffs on U.S. goods from 84% to 125%, mirroring the U.S. However, the spike has raised concerns over global economic welfare.
As of press time, the DXY index has dropped by 1.12% over the last 24 hours and is at 99.783. In previous cycles, similar dips in the index, like those in April 2017 and May 2020, preceded major Bitcoin rallies, with price surges of over 500%. On the other hand, Bitcoin, despite facing a significant price drop, remains steady and continues to trade at $83,379.
Meanwhile, Peter Schiff, the vocal critic of Bitcoin, argued in his X post that the DXY had traded above 110 in January 2025 when traders believed Trump’s tariffs would strengthen the dollar. However, with the DXY declining since the Liberation Day, he hints that this is an early sign of a dollar crisis. Further, he emphasised that Bitcoin has failed to live up to its promise and has been outshone by the “barbaric relic” it was designed to replace.
Related: Trump’s Tariffs Trigger Crypto Market Dip as Fear Spikes
Still, Bitcoin is showing early signs of recovery. Following Trump’s announcement of a 90-day pause on tariffs, Bitcoin has started to bounce back, signaling minor but positive gains, which suggests that momentum could be building. The next few weeks will be crucial to determine if Bitcoin will enter a bull run or remain low amid ongoing geopolitical tensions and market uncertainty.
