Standard Chartered Bank warns: The US dollar may face a "significant fall risk" next year, will it be favourable information for Bitcoin?

According to Bloomberg, Standard Chartered Bank recently pointed out in a report that if US President Trump's economic policies, while increasing the US debt burden, fail to boost the economy, it will lead to a significant decline risk for the US dollar, a symbol of US credit, in 2026. (Synopsis: Former Chief Economist of the IMF: The rise of cryptocurrencies in the global underground economy is eroding the hegemony of the dollar) (Background supplement: The collapse of the US credit standard? In the 100 days since Trump took office, the dollar index plunged 9%, the worst record in half a century) According to Bloomberg, Standard Chartered Bank recently pointed out in a report that if US President Trump's economic policies, while increasing the US debt burden, fail to boost the economy, it will lead to a significant decline risk for the US dollar, a symbol of US credit, in 2026. U.S. debt continues to accumulate, foreign confidence shakes In response to this view, Steve Englander, head of global G10 foreign exchange research at Standard Chartered Bank, wrote in the report that the widening US fiscal deficit is reducing national savings while increasing the demand for foreign savings, which translates into a higher current account deficit. If Trump's policies fail to boost growth and foreign investors lose confidence, maintaining a high current account deficit could become challenging in the coming months. Englander explicitly warns: If the economy or financial markets do not perform well, the downside risk to the dollar will increase as external debt accumulates. At the same time, Englander further pointed out that the dollar and US Treasuries have been hit by Trump's aggressive tariff policy and its chaotic implementation, and some investors have begun to question the stability of US assets. While Trump has shown a willingness to negotiate on trade policy, investors' focus is shifting to fiscal issues and the size of new debt that his tax bill could bring. Investors may not sell the dollar immediately in the short term However, for his own judgment, Englander also said that foreign investors are currently reluctant to completely sell traditional safe-haven assets such as the dollar and US Treasuries before waiting to see whether Trump's policies can boost economic growth. He noted that if the tax bill is passed, it could provide a short-term boost to the economy in 2025, but that boost could fade in mid-2026 or 2027, when concerns about long-term growth and debt impacts will resurface. He further warned that if trade policy remains "volatile", investors will be reluctant to further increase their exposure to the dollar, which could lead to "significant" volatility in the dollar. In addition, improved growth prospects in China and Europe will also put additional selling pressure on the dollar. Englander also mentioned that any Fed policy easing may also have limited effect, because if investors believe that the increase in fiscal deficits during a recession will lead to an unsustainable debt path, the low interest rate on short-term Treasuries may not extend to long-term Treasuries. Will the depreciation of the US dollar push Bitcoin higher? It is worth mentioning that if the dollar faces depreciation pressure, it may create opportunities for other assets, especially bitcoin. According to TradingView, the dollar index has fallen 7.96% so far this year, tentatively trading at 99.87 at the time of writing. On the other hand, Bitcoin, although hit hard by Trump's tariff policy in April, once fell below $80,000, but in a recent strong rally, bitcoin once again hit a record high, officially breaking through the $110,000 price barrier. In addition, more and more listed companies are following the micro-strategy approach and using Bitcoin as a strategic reserve; At the same time, in the context of the establishment of bitcoin reserves in the United States, more and more sovereign countries have begun to discuss the possibility of establishing strategic bitcoin reserves. Therefore, when the dollar weakens due to debt issues or policy instability, investors may turn to Bitcoin to diversify risk or seek capital preservation. Related reports Crypto czar shouts "the United States will increase its position in bitcoin": Trump says you can buy it without raising new debt IMF warns El Salvador bitcoin action: Aid conditions pull up the red line of "no increase in BTC" Six indicators analysis: How much will the price of bitcoin reach at the end of 2025? (Standard Chartered Bank warns: The dollar may face "significant downside risk" next year, which will be positive for bitcoin? This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".