- The dollar falls not least because of the Middle East conflicts at a three -year low and shows that the demand for the Greenback drops in times of crisis.
- Bitcoin increases again over $ 107,000 and thus signals its status as a safe port in view of the expiry of the world’s leading currency.
In view of the escalating geopolitical tensions in the Middle East, the US dollar has dropped to the lowest level since 2022. In contrast to earlier crises, the dollar could not get its typical status as a safe haven during the recent conflict between Iran and Israel. In the meantime, Bitcoin has Remarkable strength shown And back the price level of $ 107,000, which causes analysts to the question of whether the cryptocurrency proves to be a new value preservation in times of uncertainty.
The US dollar index (DXY), which measures the performance of the Greenback compared to a basket of the most important currencies, fell to around 97.50 and thus to the weakest level since February 2022. This decline fell together with the tightening of the conflict according to the Israeli air strikes on Iran at the beginning of June. Such geopolitical instability usually triggers an escape to safety and drives investors in traditionally safe systems such as the US dollar or government bonds. This time, however, the dollar only showed limited resistance.
The macroeconomist Lyn Alden found that despite the tensions that have been increasing for weeks, the dollar experienced “hardly any escape to safety”. The cautious reaction of the dollar is in a strong contrast to October 2024, when an Iranian rocket attack on Israel had the DXY skyrocketed by over 2.5 %. The current environment indicates a dwindling trust in Fiat currencies as a refuge in times of crisis.
The dollar index is dabbling in new cycle lows today.
Barely got any flight-to-safety bid in the past couple weeks, either. https://t.co/4kYeJhDDQn pic.twitter.com/cgaC9cDceA
— Lyn Alden (@LynAldenContact) June 25, 2025
Bitcoins relaxation and market stability
Der Bitcoin course Was volatile, but resistant and fell below $ 100,000 before reaching the $ 107,000 mark at the end of June. At the time of reporting, Bitcoin was traded near $ 107,191, with a daily price movement and a market capitalization of over $ 2.1 trillion. The total stock of Bitcoins in circulation is still 19.88 million BTC and thus approaches the upper limit of 21 million.
Despite a decline in the trading volume by over 12 % to $ 44.8 billion within 24 hours, the Bitcoin course showed consolidation within a tight range between $ 107,000 and $ 108,250. Analysts such as Matthew Hyland described the current market as one in which “the bulls have control”, which consumes the ability of Bitcoinher, to resist the recent risk of risk that influences the wider markets.
Bitcoin as a new threshold market system
Some market experts see the latest strength of Bitcoin as a reflection of a broader capital rotation away from traditionally safe ports. Jamie Couts, cryptoanalyst at Real Vision, compared the current macroeconomic climate with the early 2000s when the dollar devaluation triggered an increase in shares and raw materials of the emerging countries.
Couts pointed out that the emerging market markets exceeded the developed markets for triple between 2002 and 2008, since investors were looking for growth opportunities in younger economies and thus paving their way for groups like the Brics countries. He suggested that cryptocurrencies in today’s environment should be considered in a similar position as a threshold market trade, whereby capital flows into digital assets that are perceived as dynamic and energetic.
If you remember 2002–2008, the last major dollar depreciation lit a fire under EM equities and commodities. EM outperformed DM by 3x as capital chased high-growth, young economies — giving rise to BRICS.
Crypto is today’s EM. Capital is moving where the energy is. Fiat is… pic.twitter.com/6eI4CZZaIm
— Jamie Coutts CMT (@Jamie1Coutts) June 25, 2025
The divergence between the weakening of the dollar and the relative stability of Bitcoin raises the question of how the preferences of investors change in times of uncertainty. While government bonds and the dollar traditionally served as crisis protection, the recent events signal changes in Safe-Haven dynamics.
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