Falling DXY part of US financial system’s ‘long-term transition’ — Will Bitcoin continue to shine?

Quick Summary:

Today, the US economy holds around $102 trillion in public and private dollar-denominated debt, with another $18 trillion owed by borrowers outside the US And that’s not even counting derivatives, which would push the total much higher. Yet only $5.8 trillion in base money actually exists.“It’s like a game of musical chairs with more than 20 kids for every chair,” Alden writes.“And the music can’t stop for long.”The US plays a special role in this system.

As Alden puts it,“I view the United States and indeed the global financial system as likely beginning a very long-term transition.”The Bitcoin to DXY relationshipBitcoin (BTC) and DXY are inversely correlated.

The US and the dollar are in a “long-term transition”Fractional reserve banking, the system that fiat money relies on, creates money through lending.

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Article Details

Author / Journalist: Cointelegraph by Marie Poteriaieva

Category: Crypto

Markets: United StatesBhutanEl SalvadorNorway

Topics: Money Part Trillion Economy Bitcoin Monetary Dollar Financial System Assets Global

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-05-07 @ 22:30:00 (1 days ago)

News Timezone: GMT -5:00

News Source URL: cointelegraph.com

Language: English

Article Length: 1090 words

Reading Time: 7 minutes read

Sentences: 59 lines

Sentence Length: 19 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Coin Telegraph

News ID: 28479957

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