Sign up now for <\/strong>CryptoCodex<\/strong><\/a>\u2014A free crypto newsletter that will get you ahead of the market<\/strong><\/p>\n The bitcoin price has fallen sharply overnight, dropping from almost $96,000 per bitcoin to just over $90,000 in a matter of minutes, while gold hit a fresh all-time high after Trump threatened to escalate tariffs on eight Nato allies unless Denmark agreed to a deal for Greenland.<\/p>\n Now, as Bank of America\u2019s chief executive issues a stark $6 trillion crypto warning<\/a>, traders are braced for this week\u2019s inflation reading to be higher than previously expected\u2014triggering warnings of \u201cunprecedented stagflation.\u201d<\/p>\n 01\/20 update: Billionaire investor Ray Dalio, the founder of hedge fund giant Bridgewater Associates, has warned the latest weakness in the U.S. dollar shows his long predicted collapse in the dollar as the world\u2019s reserve currency is \u201chappening now.\u201d<\/p>\n \u201cThe existing fiat monetary order, the domestic political order, and the international geopolitical order are all breaking down, so we are at the brink of wars,\u201d Dalio posted<\/a> to X.<\/p>\n Last year, the U.S. dollar lost almost 10% as measured by the U.S. Dollar Index, with further losses expected alongside huge gains for gold, silver and the bitcoin price this year<\/a>.<\/p>\n \u201cIt all is happening because of the big cycle that is driven by the five big forces,” Dalio wrote, referring to the forces he laid out in his book Principles for Dealing with the Changing World Order, which are economic cycles, domestic disorder, great power conflicts, acts of nature and technological development.<\/p>\n Dalio pointed to a video that shows the era of U.S. and dollar dominance giving way to a new China-led cycle. <\/p>\n \u201cWhen a new rising power gets strong enough to compete with the dominant power that is having domestic breakdowns external conflicts most typically wars take place,\u201d Dalio said in the 2023 video<\/a>. \u201cOut of these internal and external wars come new winners and losers that then the winners get together to create the New World Order and the cycle begins again.\u201d<\/p>\n Meanwhile, as the U.S. dollar is set for its largest daily fall \u200bin over a month, the bitcoin price has slipped under $90,000, giving up almost all of its 2026 gains, just as gold hits a fresh all-time high.<\/p>\n \u201cBitcoin is taking a double hit from tariffs,\u201d Alex Kuptsikevich, FxPro chief market analyst, said in emailed comments. <\/p>\n \u201cDonald Trump\u2019s intention to turn the U.S. into the world\u2019s crypto capital has made crypto a kind of American asset. Therefore, the return of the \u2018sell America\u2019 trade quickly pulled the rug out from under the bitcoin bulls.\u201d<\/p>\n 01\/21 update: Speaking in Davos at the World Economic Forum, Dalio has warned the political standoff over U.S. president Donald Trump\u2019s bid for control of Greenland could lead to a new phase of global financial conflict.<\/p>\n \u201cOn the other side of trade deficits and trade wars, there are capital and capital wars,\u201d Dalio told<\/a> CNBC on the sidelines of the World Economic Forum in Davos, Switzerland. \u201cIf you take the conflicts, you can\u2019t ignore the possibility of the capital wars. In other words, maybe there\u2019s not the same inclination to buy at U.S. debt and so on.\u201d<\/p>\n As trust is eroded, Dalio warned that countries holding large amounts of U.S. dollars and Treasurys may opt to not finance U.S. deficits, which have ballooned in recent years to push the U.S. national debt to over $38 trillion.<\/p>\n \u201cWhen you have conflicts, international geopolitical conflicts, even allies do not want to hold each other\u2019s debt,\u201d Dalio said, pointing to the soaring gold price that’s now approaching the $5,000 per ounce level. \u201cThey prefer to go to a hard currency. This is logical and it\u2019s factual, and it\u2019s repeated throughout world history.\u201d<\/p>\n The surging gold price, which has continued its record-breaking 2025 run into this year, is being viewed as a warning signal by some who are concerned the U.S. is losing its reserve currency status.<\/p>\n “The gold price is telling us we are losing reserve currency status at an accelerating rate,” billionaire crypto investor Mike Novogratz posted<\/a> to X shortly after it was revealed<\/a> he’ll launch a $100 million crypto hedge fund in the coming months and alongside a prediction the bitcoin price will bounce back “in time.”<\/p>\n Bitcoin\u2019s performance over the last week has sapped confidence in the cryptocurrency as an emerging safe haven, with the bitcoin price looking at risk at falling further as the crisis continues.<\/p>\n “Bitcoin is behaving like a risk asset, not a safe haven,” Carolane De Palmas, analyst at ActivTrades, said in emailed comments. <\/p>\n “When tariff fears pushed U.S. equity futures lower, gold and silver surged to record highs, while bitcoin fell sharply. That\u2019s the opposite of what you would expect from \u2019digital gold.\u2019 Over the past year, institutional investors have largely confirmed viewing bitcoin as a risk-on asset, closer to high-beta tech than a hedge.<\/p>\n “The next key technical zone to watch is the $90,000 to $87,000 range. A sustained hold there, ideally followed by a bounce supported by rising volume, would point to a corrective move rather than the start of a deeper drawdown\u2014though volatility is likely to remain elevated.”<\/p>\n Sign up now for the free <\/strong>CryptoCodex<\/strong><\/a>\u2014A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin price and crypto market swings<\/strong><\/p>\n Forbes\u2018Serious Concern\u2019\u2014Trump Just Quietly Revealed A Bitcoin Price Game-ChangerBy Billy Bambrough<\/a> U.S. Federal Reserve chair Jerome Powell grappled with the so-called debasement trade that boosted gold and the bitcoin price last year.<\/p>\n Getty Images<\/p>\n Economists at Barclays and Morgan Stanley have increased their December U.S. personal consumption expenditures price index (PCE) forecasts to 2.8% or 2.9%, while BNP Paribas\u2019s Andy Schneider wrote in a note seen<\/a> by Reuters that the reading will be “significantly” higher than last week\u2019s 2.7% consumer price index (CPI).<\/p>\n The latest PCE data, the Federal Reserve\u2019s preferred measure of inflation that excludes volatile food and energy prices, will be released on Thursday, potentially reviving fears of so-called stagflation that sees sluggish economic growth combined with soaring prices.<\/p>\n \u201cA coming collapse in the dollar will send consumer prices soaring,\u201d Peter Schiff, a gold investor who is typically bearish on the dollar and critical of bitcoin, posted<\/a> to X. \u201cGet ready for unprecedented stagflation.\u201d<\/p>\n Ahead of the latest inflation reading, the U.S. dollar has weakened as last year\u2019s so-called debasement trade\u2014which saw investors bet against the dollar and pile into scarce assets like bitcoin, gold, silver and copper alongside stocks\u2014returned.<\/p>\n![\"bitcoin,](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2026\/01\/1769012539_488_0x0.jpg\")
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