The US dollar has recorded its lowest level against the euro and British pound in three years. This could provide a new opportunity for cryptocurrencies as the global reserve currency faces new challenges.
The European Central Bank lowered interest rates again today, while the US has not yet done so. The declining dominance of the dollar reflects the long-standing warning of Bitcoin's creator Satoshi Nakamoto about fiat currency.
Dollar Problem, Benefit for Cryptocurrencies?
The US dollar is the most important fiat currency in the world for several reasons. It plays a crucial role in the massive consumer economy, global oil flows, and US Treasury bonds.
However, the dollar's three-year low could indicate problems in traditional finance and provide opportunities for cryptocurrencies, as de-dollarization globally promotes Bitcoin adoption.
Despite the recent positive report from the Atlanta Fed, warnings of a US recession are becoming increasingly clear. The dollar is declining against the euro, British pound, and other currencies, while the cryptocurrency market is in a state of greed.
There are also concerning signals that could severely impact the housing market.
BREAKING: US home values saw month-over-month declines in 61% of US counties in April, the most since 2022.
— The Kobeissi Letter (@KobeissiLetter) June 4, 2025
This percentage has TRIPLED over the last few months, according to Reventure.
Outside of 2022, such an elevated share was last seen in the 2007-2010 period.
However,… pic.twitter.com/I8rwexJdVd
Cryptocurrency analyst and Coin Bureau founder Nick Perkrin discussed this topic and more in an exclusive commentary with BeInCrypto. According to Perkrin, cryptocurrencies are immune to some concerns unlike the dollar:
"Even if stagflation occurs, Bitcoin can protect portfolios. It is increasingly seen as an alternative by investors avoiding US assets or losing confidence in the US economy, and is inherently resistant to inflation. Bitcoin is very different from the rest of the cryptocurrency market. There are no other assets with the same safe-asset characteristics."
Perkrin explained the cryptocurrency investment vision of Bitcoin maximalists. This was designed to resist dollar chaos, as created by Satoshi Nakamoto.
Bitcoin and the entire cryptocurrency ecosystem were born from the ruins of the 2008 collapse. Therefore, they place a strong emphasis on trustless decentralized governance.
Unfortunately, today's community may forget the difficult experiences that shaped this spirit.
Governance Questions
How are US institutions responding to the dollar's problems? Especially when compared to the cryptocurrency community. The European Central Bank lowered interest rates today. This is something repeatedly requested by President Trump to Fed Chair Jerome Powell.
However, it may not be that simple. The EU is an important consumer block and economic region, but the US is the foundation of the modern economy.
If the Fed lowers rates now, it could exhaust its ability to respond to future crises. After all, it cannot lower rates below zero and has limited tools available.
Meanwhile, institutional investors are leaving the dollar and moving primarily to Bitcoin.
Also, President Trump's insistence on imposing tariffs could be a complete mistake. Despite tariff relief boosting the US economy, he recently announced plans to impose tariffs on the EU.
Similarly, Trump reported positive negotiations with Xi Jinping today, but within less than a week, he threatened sanctions against China.
These confusing trade policies are causing chaos for the dollar, and cryptocurrency liquidations remain relatively low. All this discord reaffirms why Satoshi created Bitcoin separate from world governments.
Trustless and leaderless Bitcoin is immune to concerns that significantly impact nations. Perkrin predicts this will promote BTC investment:
"The existing divide between BTC and altcoins could deepen, and investors may choose BTC as a store of value and avoid more speculative and risky assets like altcoins. The only other safe haven option would be real-world assets (RWA) such as tokens backed by gold," he argued.
Although there are still very weak signals, the crisis has not fully matured. If a wise investor wants to move assets from dollars to cryptocurrency, there is still time.
Ultimately, there is absolutely no way to predict which direction the market will go.
