Since the start of the year, DXY has fallen 11% to 98.23 points. In parallel, gold surged to a record high of $3,578. According to Steven Gregory, founder of crypto platform Vtrader, this reflects strong hedging activity from institutional investors against the dollar’s decline.
Gregory believes that liquidity from precious metals could flow into fixed-supply assets like Bitcoin and Ethereum.
Meanwhile, global markets are experiencing a bond sell-off. Yields on 30-year government bonds in the U.S., U.K., Australia, and Japan have spiked. Robin Brooks, senior fellow at the Brookings Institution, called this anomaly unusual:
“It’s rare for 30-year Treasuries to rise in yield during a Fed easing cycle,” he noted.
It's really unusual for 30-year Treasury yield to rise in a Fed easing cycle. It's even more unusual for 30-year yield to rise with all the world's major central banks in an easing cycle. This tells you monetary policy isn't the problem. Runaway fiscal deficits are the problem... pic.twitter.com/k7rWDu1ApU
— Robin Brooks (@robin_j_brooks) September 3, 2025
Brooks added that many governments shifted debt issuance to shorter maturities, sparking a surge in long-term bond yields worldwide.
The widening gap between rates points to rising inflation expectations and concerns about the Fed’s independence. Donald Trump’s administration has repeatedly pressured Fed Chair Jerome Powell to loosen monetary policy.
Gregory stressed that in an environment of higher inflation, risk assets like Bitcoin tend to outperform. He suggested this could create ideal conditions for a new “supercycle” in crypto.
Year-to-date, Bitcoin is up 96% despite a pullback from its record high of $124,545. At the time of writing, the leading cryptocurrency trades near $110,400.
