Metals Surge as Dollar Weakens, While Crypto Remains Under Pressure
Metals and other hard assets continue to hit record highs as the U.S. dollar weakens, yet cryptocurrencies remain in a prolonged downtrend.
The U.S. dollar index (DXY) dropped again Tuesday, trading just above its 2025 lows. After a post-election rally following Donald Trump’s November 2024 victory, the dollar fell sharply in the first half of 2025 and has since traded near multi-year lows. Early in the year, this weakness boosted stocks, gold, and Bitcoin (BTC $87,288.23) to record levels.
Since October, trends have diverged. Gold, silver, and copper all reached fresh highs Tuesday, while Bitcoin and broader crypto markets continued to decline.
Dollar Outlook
The DXY is testing a long-term support level dating back to the 2008 financial crisis, tested multiple times this year. With foreign central banks tightening policy and the U.S. Fed facing pressure to cut rates, the dollar could break below this floor. Such a move may provide the catalyst Bitcoin needs to reverse its downtrend.
