Dollar Weaponization Is Fueling the Next Crypto Boom?
The post Dollar Weaponization Is Fueling the Next Crypto Boom? appeared on BitcoinEthereumNews.com.
The crypto market is once again at a critical juncture, not just because of technical signals on the charts but also due to the geopolitical and monetary backdrop shaping global capital allocation. The aggressive weaponization of the U.S. dollar—through sanctions, asset freezes, and SWIFT restrictions—is no longer just a foreign policy tool; it is reshaping how central banks, investors, and even sovereign states view the dollar as a reserve asset. The aftershock is clear: diversification into gold, yuan, and increasingly, decentralized digital assets. On the daily chart, total crypto market capitalization stands at $3.83 trillion, showing a narrow consolidation within the Bollinger Bands. While price has held the mid-band near $3.89T, resistance remains around the $4T zone. This technical setup is converging with a fundamental story: crypto may be entering a phase where dollar overreach acts as a tailwind. The Mechanics of Dollar Weaponization Dollar dominance rests on one fact: nearly all global transactions denominated in dollars eventually pass through New York settlement. That choke point gives Washington unparalleled leverage to freeze assets, sanction firms, or exclude entire nations from SWIFT. From Iran in 2012 to Russia in 2022, the U.S. has repeatedly used this tool with devastating effect. But here’s the thing: the very strength of this system is also its weakness. If reserve managers and corporations come to believe their assets are not safe in dollars, they will accelerate diversification. The recent survey showing 85% of central bankers now factor sanctions risk into asset allocation tells us the shift is already well underway. Crypto News: Technical View of the Crypto Market Total crypto market cap in USD : TradingView Looking at the daily chart: Bollinger Bands: Price is consolidating between $3.74T (lower band) and $4.04T (upper band). A breakout above $4T could trigger a move toward $4.2T and…
Filed under: News - @ August 28, 2025 2:31 pm