The US dollar index, DXY, “has entered a free-fall mode,” observed Ted Labs co-founder Niels on X on June 29.

The index, which measures the greenback’s strength against a basket of currencies, has declined 11 so far this year, which is its “worst performance in 40 years,” he added.

He also said that the US government is planning to devalue it even more by raising the debt limit by $5 trillion.

“Buy and HODL hard assets like BTC as they are about to go parabolic.”

DXY Declines Accelerate

The DXY is currently just above 97, its lowest level since February 2022, when much of the world was still gripped by pandemic-induced lockdowns.

The recent multi-year low came amid rising odds of a rate cut by the Federal Reserve. The CME FedWatch Tool now shows a 19 chance of a 25-basis-point cut at the July 30 meeting.

The index has slumped almost 12 since January, when it was a little over 110. President Donald Trump’s trade tariffs, conflict in the Middle East, and increasing M2 money supply through central bank printing have significantly devalued the dollar.

“The more money they print, the higher asset prices go,” said Bitcoin pioneer Anthony Pompliano on Sunday.

“They can’t stop printing money, so asset prices can’t stop going up over the long run. The only major financial sin you can commit is saving in dollars or bonds. Both get devalued away.”

The entrepreneur has launched his own Bitcoin treasury company, joining the ranks of corporations that are accumulating the asset for strategic reserves amid growing concern about fiat currency devaluation.

Earlier this month, Director of Global Macro at Fidelity, Jurrien Timmer, said “the price action in the dollar and bonds tells the story of a potentially changing global regime,” before assing that gold and other currencies are replacing the USD and Treasurys as the safe haven.

Good News For Bitcoin

Bitcoin has traditionally performed well when the dollar has weakened.

DXY fell almost 15 in 2017 and into early 2018, coinciding with a massive crypto bull market and a new Bitcoin all-time high.

The index also tanked around 13 from March 2020 to mid-2021, which was around the same time that Bitcoin and crypto surged to all-time highs again in late 2021.

DXY falling almost 12 so far in 2025 could be one of the catalysts that precedes the 2025 bull market surge later this year, which would be right on time in the four-year cycle.