Since the start of 2025, the US Dollar Index has dropped 11%, hovering around levels last seen in April 2022. This decline has positioned Bitcoin as an increasingly attractive macro hedge for investors seeking to protect their assets against currency depreciation.
Bitcoin’s decentralized nature and limited supply make it a compelling alternative to traditional fiat currencies, especially in times of economic uncertainty. As the dollar weakens, more investors may turn to Bitcoin to preserve their wealth.
However, it’s important to consider the volatility and regulatory landscape of cryptocurrencies when evaluating their suitability as a hedge against fiat currency fluctuations.
