Bitcoin has experienced a surge in price, approaching $100,000 after recent revelations about potential crypto market instability. The digital asset’s value is currently hovering around $93,704, following a strong 6.39% gain over the past seven days. Experts attribute this rise to the weakening U.S. dollar and its impact on investor sentiment.
The Federal Reserve, responsible for managing the dollar’s strength, has been attempting to maintain stability. However, pressure from President Trump and changing global trade rules are pushing the dollar lower, leading to increased concerns about a potential market downturn according to analysts at Deutsche Bank. They warn that this volatility presents a heightened risk of significant market disruptions. Meanwhile, Goldman Sachs, in its recent report, confirms the likelihood of the U.S. dollar’s decline, suggesting it is poised for sustained weakness.
In response, investors are increasingly turning toward Bitcoin as a haven asset. Last week alone, over $3.4 billion flowed into crypto investment products, including Bitcoin ETFs. This marked the third-highest weekly inflow ever recorded by CoinShares, highlighting growing interest in digital assets.
James Butterfill, head of research at CoinShares, attributed this shift to investors seeking a safe haven from uncertainties surrounding tariffs and dollar depreciation. “We believe concerns over potential tariff impacts on corporate earnings and the dramatic weakening of the U.S. dollar have prompted more investors to explore Bitcoin as an alternative,