Trump signals a weak dollar, market restructuring behind DXY falling below 97

The US Dollar Index DXY recently declined sharply by over 50 points, hitting a multi-month low and breaking below the 97 level for the first time since September last year. Against the backdrop of Trump signaling a weak dollar, the speed and magnitude of the dollar’s decline have exceeded market expectations, driving a re-pricing of global asset allocation.

Historic US Dollar Depreciation and Policy Signals Amplify

According to the latest news, the decline of the US Dollar Index is not an isolated event but the result of multiple policy signals stacking up. The weak dollar signals released by Trump have directly influenced market expectations, prompting investors to reassess the dollar’s role as the global reserve currency.

Relevant information indicates that over the past year, the dollar’s purchasing power relative to gold has decreased by about 50%, marking the largest depreciation in US history. This not only reflects the dollar’s own weakness but also highlights the severity of fiat currency depreciation pressures.

Market Signals from US-Japan Coordinated Intervention

Analysts point out that discussions of coordinated intervention between the US and Japan could increase short-term downward pressure on the dollar, especially with the Federal Reserve adopting a dovish stance. This policy-level coordination indicates that concerns over a strengthening dollar have risen to the official level among multiple governments.

Asset Reallocation in the Weak Dollar Era

The most immediate beneficiaries of the dollar’s weakness are safe-haven assets. According to recent reports, gold broke through the $5,000 per ounce mark for the first time on January 24, achieving an unprecedented milestone. Gold surged 20% within just 24 hours, coinciding with the dollar index falling to a low of 97.45.

Tokenized Gold Becomes a New On-Chain Safe Haven

What’s interesting about this surge is that it not only boosted physical gold prices but also stimulated demand for tokenized gold. Investors are increasingly allocating to tokenized gold (XAUT) via decentralized exchanges, bringing traditional safe-haven assets into the on-chain world. This reflects a growing investor demand for diversified allocation methods amid intensifying fiat currency instability.

Major institutions like Bank of America and Goldman Sachs have set their summer 2026 gold target prices between $5,400 and $6,500, indicating room for further upside from current levels.

Structural Opportunities in the Crypto Market

From a macro perspective, a weak dollar environment is beneficial for the entire crypto asset market. As fiat currencies face increasing depreciation pressures, investors seek alternative assets, and crypto assets, as non-sovereign assets, are an ideal choice.

According to the latest market analysis, although mainstream cryptocurrencies like Bitcoin have experienced technical adjustments in the short term, macroeconomic improvements lay a foundation for their subsequent performance. Personal opinion suggests that once the weak dollar trend is established, it will provide long-term support for the entire crypto market.

Summary

The dollar index breaking below 97 and experiencing historic depreciation is not just a technical adjustment but reflects deep policy changes and macroeconomic shifts. Trump’s signals of a weak dollar, US-Japan coordinated intervention, and the dovish stance of the Federal Reserve are stacking up to drive an important turning point.

In this process, gold breaking through $5,000, and the surge in demand for tokenized gold are manifestations of market re-pricing. For crypto investors, the key is to understand the underlying logic: when fiat currency depreciation becomes a trend, the relative value of non-sovereign and hard assets will continue to rise. Attention should be paid to whether the dollar continues to weaken and how this trend further propels the crypto market.