Investors are increasingly moving capital into scarce assets such as Bitcoin, gold, and real estate due to concerns over the debasement of the U.S. dollar. Central banks, including the Federal Reserve, are hinting at potential interest rate cuts despite persistent inflation, while government deficit spending continues to rise. This environment has led to a decline in the purchasing power of major fiat currencies, including the dollar, euro, and yen, prompting a focus on the 'debasement trade.'
The cryptocurrency market, where stablecoins are typically pegged to the U.S. dollar, faces potential risks as the dollar weakens. This situation may drive a shift towards non-USD stable assets, such as gold-backed or decentralized stablecoins, as investors seek to protect their wealth from currency devaluation.
Investors Turn to Bitcoin and Gold Amid Dollar Debasement Fears
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