The second half of May has proven to be a major plus for the cryptocurrency market. Yet, that could be set to get even better for the leading crypto by market cap. Indeed, With Bitcoin reaching a new all-time high price of $111,000 Standard Chartered Bank has recently theorized that an ongoing US dollar fall could incite an even greater BTC rally.
The greenback has struggled mightily so far in 2025 for a variety of reasons. Macroeconomic pressures and geopolitical tensions have left the global reserve currency at three-year lows. That could prove to be a benefit to the digital asset sector and Bitcoin’s price specifically.
Also Read: Standard Chartered Apologizes for $120k Bitcoin Target: Says It ‘May Be Too Low’
Bitcoin Set for 2nd All-Time High in 2025? Standard Chartered Says US Dollar Can Make It Happen
In a recent speech, US Vice President JD Vance says the country did not believe that “Bitcoin competes with the US dollar.” Yet, that doesn’t appear to be a perspective shared by many within the finance sector. Specifically, one of the most prominent banks in the world has noted that the two assets have an adverse relationship.
The US dollar index (DXY) has plunged over 10 points since the start of the year, according to TradingView data. Moreover, that is the largest drop since 2022, with all eyes on what that could mean for the finance markets. It could be a benefit to Bitcoin, as Standard Chartered noted that the US dollar’s recent decline may fuel another BTC rally.
Also Read: BRICS: Standard Chartered, Deutsche Bank Predict US Dollar’s Future
“If the economy or financial markets falter, the downside risk to the USD is higher the greater the accumulation of external liabilities,” the bank’s head of G10 FX Research, Steve Englander, told Bloomberg. “If the debt path is not flattened, borrowing terms may become increasingly onerous as risk premia increase the cost of public and private borrowing,” he added.
Essentially, he is stating that the US debt may push foreign creditors to demand higher risk premiums. This would then cause higher treasury yields with a weaker dollar. Altogether, it would weigh heavily on the fortification of US debt.
With the greenback facing increased downside risk, a hedge is a necessity for investors. That is where Bitcoin comes in. “I think Bitcoin is a hedge against both TradFi and US Treasury risks,” Standard Chartered’s Geoff Kendrick told BeInCrypto. Therefore, if the dollar continues to fall, BTC could be in line for another run.