Bitcoin and crypto prices have suffered an almighty crash over the last few months, with almost $2 trillion wiped from the market (and traders suddenly braced for more pain to come).
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The bitcoin price dropped to just over $60,000 per bitcoin earlier this month, down more than 50% from its October 2025 peak even as U.S. Treasury secretary Scott Bessent issues a “very important” crypto prediction.
Now, as Tesla billionaire Elon Musk issues an alarming warning over the future of the U.S. dollar, billionaire hedge fund manager Ray Dalio’s warning of world order break down is fueling fears of a further bitcoin price crash.
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“Sell out of all debt and buy gold because wars are financed by borrowing and printing money, which devalues debt and money, and because there is a justifiable reluctance to accept credit,” Dalio, who has repeatedly warned that the era of dollar dominance is coming to an end, wrote in his latest, viral X essay, predicting imminent conflict will result in the devaluation of the dollar.
While a weaker dollar has historically been a bullish signal for bitcoin, since early 2025 bitcoin has developed a positive correlation to the dollar, matching its rises and falls, it was noted by Coindesk.
Meanwhile, a Bank of America survey that found investor exposure to the U.S. dollar has dropped to its lowest level since it began polling in 2012.
"The belief of a continued reduction in U.S. dollar holdings amongst reserve managers grew stronger, and a larger share now expect an increased pace of rebalancing," the bank’s analysts wrote.
The dollar has fallen in part thanks to the "sell America" trade that took off following U.S. president Donald Trump’s so-called Liberation Day tariff salvo last year, with expectations of Federal Reserve interest rate cuts adding to bets against the dollar.
“This week’s U.S. economic data and U.S.-Iran talks could be decisive for markets," Lukman Otunuga, senior market analyst at global broker FXTM, said in emailed comments.
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"A solid PCE print and GDP could reinforce dovish rate-cut bets, pressuring the dollar while supporting gold and U.S. equities. Gold remains well-supported above $5,000, but volatility may persist given thin liquidity in China and geopolitical uncertainty. Traders should expect swings across FX, equities, and crypto.”
The U.S. dollar has weakened so far into 2026 as last year’s so-called debasement trade—which saw investors bet against the dollar and pile into scarce assets like bitcoin, gold, silver and copper alongside stocks—returns.
“The crypto bubble is imploding,” Bloomberg Intelligence macro strategist Mike McGlone posted to X and warning that the bitcoin and crypto price crash could herald a coming U.S. recession.
McGlone pointed to “gold and silver grabbing alpha at a velocity last matched about half a century ago and spiking volatility set to trickle up to stocks,” as adding to risk of a further bitcoin price and crypto crash.