Weakening Dollar and Surging Euro Stablecoins Could Reshape Crypto Investments
The post Weakening Dollar and Surging Euro Stablecoins Could Reshape Crypto Investments appeared on BitcoinEthereumNews.com.
As the US dollar weakens, an opportunity arises for the Euro’s role in the crypto economy. The increasing adoption of euro-backed stablecoins reflects European investors’ desire to counteract the foreign exchange drag on their dollar-pegged assets. Luke Nolan, Senior Research Associate at CoinShares, told BeInCrypto that he expects this trend to continue, though he doesn’t believe that the role of the US dollar will be completely erased from the picture. A 50-Year Low for the Dollar In recent months, the US dollar has experienced a significant and rapid decline. Its performance in the first six months of 2025 alone was its worst for the first time since 1973. According to Morgan Stanley, the US dollar’s value has fallen by approximately 11% against other currencies in the first half of this year, marking its largest decline in over 50 years and ending a 15-year growth period. US Dollar Index. Source: Statista. Investor confidence in the US economy and its assets has been damaged by unpredictable government policies, particularly around tariffs and trade. The recently passed “One Big Beautiful Bill Act” has exacerbated these concerns by raising fears about growing budget deficits and the nation’s rising debt. These policies have led investors to move away from US government bonds. Given the continuation of these policies, Morgan Stanley also projected the dollar would fall by an additional 10% by the end of 2026. With investor focus shifting away from the notion of US exceptionalism, currencies like the Euro, the dollar’s main competitor, may stand to gain. This trend could be especially pronounced in the crypto sector. Is the Dollar’s Crypto Dominance Coming to an End in Europe? The US dollar’s previously undisputed stability and dominance have traditionally served as the foundation of the world’s financial system, and the cryptocurrency market is no exception. …
Filed under: News - @ August 13, 2025 8:25 pm