The US dollar has declined by almost 11% in 2025, reaching lows not recorded in decades, amid investor concerns over Trump's economic actions.
The weakening dollar is attributed to sudden shifts in tariff and trade policies, as well as the controversial Senate tax bill favoring high-income earners.
Bitcoin has emerged as a hedge asset, with increased buying demand fueled by institutional participation and the asset's appeal amid macroeconomic uncertainty.
Market analysis suggests Bitcoin could break out to reach $140,000 in the near term, with a broader year-end target of $200,000, as Fed rate cut expectations and shifts in traditional currency flows drive demand.