Asset management firm Eurizon has indicated that a growing distrust in the dollar is catalyzing the simultaneous rallies of gold and Bitcoin. According to their analysis, the prospect of looser monetary policy is pushing investors toward fixed-supply assets as a store of value.
Fiscal and political strains in the United States are the root of the problem. This has prompted investors to actively seek other, more secure stores of value. Eurizon highlights a strong negative correlation of -0.89 between the dollar index (DXY) and Bitcoin. When the dollar weakens, the value of these assets tends to rise significantly, attracting more capital.
The U.S. Federal Reserve’s (Fed) policy adds more fuel to the fire. Markets are currently anticipating a 25-basis-point rate cut during 2025. Lower rates would increase dollar liquidity but also reduce its yield. This move accelerates what Eurizon calls the “debasement trade.” Consequently, capital leaves fiat money to take refuge in scarce, limited-supply assets. The global economy is closely watching these signals.
This phenomenon is changing how both institutions and individuals invest. The search for assets that cannot be devalued by government decisions has become a priority. The dollar’s dynamics, closely tracked by the DXY, and signals from the Fed are central to this paradigm shift. Gold and Bitcoin emerge as winners in this environment.
Is the Rotation into Safe-Haven Assets Accelerating?
Gold maintains its traditional role as an institutional safe haven. Central banks have accelerated their purchases in 2025, pushing the spot price above $3,900 per ounce. Some analyses even place the short-term target at $4,000. Meanwhile, Bitcoin combines its narrative of limited supply with unprecedented institutional access. Capital flows into ETFs and corporate purchases are raising forecasts above $125,000.
Pension funds, insurers, and private banks are increasing their exposure to gold and Bitcoin. This portfolio readjustment is a clear sign of the current trend. However, Bitcoin’s volatility remains a factor to consider. Despite this, every hint of rate cuts from the Fed shortens the timeline for demand for these safe-haven assets.
The current situation underscores a fundamental shift in investor strategy. The distrust in the dollar is not a passing trend but a key macroeconomic factor that is reshaping the markets. Closely monitoring the DXY’s behavior and future statements from the Fed will be crucial to determine how far this capital rotation into gold and Bitcoin can run.
