According to Citadel founder Ken Griffin, investors are moving away from the US dollar and putting their funds into safe havens like gold, silver, and Bitcoin. The move, called a debasement trade, has Griffin worried about a “substantial asset inflation away from the dollar.” The increase in gold and Bitcoin investments has further pushed the de-dollarization agenda, which has seen significant subscribers over the last decade.
Are Bitcoin and Gold Further Pushing the De-Dollarization Movement?
The increase in gold and Bitcoin investments is apparent in the recent price surges for both assets. Bitcoin (BTC) hit an all-time high of $126,080 on Oct. 6. Gold rose to a new peak of $3,977.19 earlier today, Oct. 7. The pivot from the US dollar could be due to macroeconomic uncertainties arising from geopolitical tensions and trade wars.
Bitcoin (BTC) and gold are expected to continue their respective upward trajectories over the coming months. October has also historically been a bullish month for BTC. 2025 seems to be following the historical pattern. Moreover, the Federal Reserve is expected to roll out another round of interest rate cuts later this month. A rate cut may lead to further price rallies for both assets.
The de-dollarization movement has seen a substantial push over the last few years. Central banks around the world have aggressively accumulated gold, a pattern that is anticipated to continue. China, in particular, seems to be going heavy on gold purchases. China also holds 194,000 Bitcoin (BTC), second to the US’s 198,012 BTC holdings.
Also Read: BRICS Just Unveiled the Plan to Replace US Dollar Worldwide
While ditching the US dollar completely may be an impossible task right now, market participants seem to be more cautious about putting their capital in the greenback. Bitcoin (BTC) and gold may appear to be a much safer bet for investors right now.