The US Dollar Index (DXY) has plummeted to a three-year low, amplifying investor interest in store-of-value assets like gold and Bitcoin. DXY, which tracks the greenback against a basket of six major currencies, dropped to 98.23 this week—its lowest since March 2022—according to TradingView.
Gold investor Peter Schiff highlighted the situation, stating, “The Dollar Index is below 98.5, a new three-year low. This is getting serious.”
So far in 2025, DXY has shed over 10% of its value. President Trump’s aggressive trade tariffs have stirred global tensions, further eroding confidence in the dollar. A similar downturn occurred in late 2022, but the current decline is more prolonged and concerning. The euro now trades above $1.15, and the dollar has slumped to 14-year lows against both the Japanese yen and Swiss franc.
BREAKING 🚨: U.S. Dollar
U.S. Dollar Index $DXY plunging to its lowest level since March 2022 📉 pic.twitter.com/NPqqcthqTz
— Barchart (@Barchart) April 21, 2025
Gold Surges to Record High
Amid the dollar’s slide, gold has surged to an all-time high of $3,380 per ounce. Often regarded as a hedge against inflation and currency devaluation, gold is seeing renewed demand from both institutional and retail investors. The metal has climbed an impressive 29% in dollar terms since the start of the year, reflecting the urgency with which markets are seeking stability. Central banks have also been increasing gold reserves, signaling a broader shift away from reliance on the U.S. dollar. The spike in gold prices underlines rising fears about global economic fragility, particularly as traditional currencies waver under geopolitical strain.
Bitcoin Reclaims $87K
Bitcoin (BTC) is also benefiting from the greenback’s weakness. The leading crypto rallied 2.5% on Monday to reach $87,550, its highest price in four weeks. Unlike recent correlations with tech stocks, BTC is now tracking gold more closely. As of writing, Bitcoin is trading around $87,400 and holding strong. A break above $88,500 could pave the way toward the $90K mark, last seen in late March.
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