Why a Weakening US Dollar Is Driving Americans and Corporations Toward Bitcoin
As warning signs flash across key segments of the U.S. economy, a growing number of Americans—retail investors and corporations alike—are turning to Bitcoin as a hedge against what may become a prolonged downturn. With the U.S. dollar weakening and traditional markets on edge, crypto’s appeal as a modern safe haven is gaining real traction.
Economic Indicators Point to Trouble
Two recent reports have added weight to fears of a potential U.S. recession. First, the OECD’s Economic Outlook projected that U.S. GDP growth will drop from 2.8% in 2024 to 1.6% in 2025, with a further decline expected in 2026. That trajectory places the world’s largest economy on a worrying path—especially when global growth rates are already subdued.
Second, the ADP jobs report revealed private-sector hiring has fallen to its lowest level in over two years. This triggered renewed political pressure on Federal Reserve Chair Jerome Powell to cut interest rates sooner than expected.
“The OECD has just put a number on one of investors’ biggest fears about the U.S. – its growth outlook,” said Nic Puckrin, founder of Coin Bureau. “If the U.S. dollar was still clinging to hopes of a rebound before this, the OECD’s damning report has finally sounded its death knell.”
He also pointed out that the U.S. dollar index (DXY) has fallen 9.3% year-to-date, with Morgan Stanley forecasting another 9% drop over the next 12 months.
Bitcoin: From Risk Asset to Financial Refuge
Bitcoin, once seen as a volatile risk asset, is increasingly being viewed through a different lens: a store of value. With its fixed supply, global accessibility, and growing institutional adoption, it offers a compelling alternative as fiat currencies show signs of structural weakness.
The stability of BTC above $100,000 over the past 20 days has only reinforced this perception. According to Puckrin, it’s a signal to markets that Bitcoin isn’t just surviving economic stress—it’s thriving in it.
“Companies are falling over themselves to prop up their treasuries with Bitcoin. As the dollar continues to devalue, we’re going to see this shift happen more and more,” he said.
Big Institutions Are Moving Fast
U.S.-based firms are now following the lead of global investors who have already begun accumulating Bitcoin in anticipation of fiat weakness. MicroStrategy, known for its aggressive Bitcoin strategy, continues to increase its holdings. Meanwhile, ETF inflows signal rising demand from mainstream investors.
Even JPMorgan has taken steps to support institutional crypto exposure, launching a service specifically to help clients gain access to digital assets.
Though some critics caution that corporate adoption of Bitcoin may not directly benefit the decentralized finance ecosystem or everyday users, it undeniably increases demand—and with it, price support.