How an Unstable US Dollar is Making Americans Rush to Bitcoin

Several key indicators of the US economy’s strength are looking bearish, signaling a new opportunity for American individuals and businesses to invest in Bitcoin. Major firms are already joining the trend.

Nic Puckrin, crypto analyst and founder of The Coin Bureau, exclusively shared his observations on this trend with BeInCrypto.

Could a US Recession Benefit Bitcoin?

Recently, it seemed that the US economy’s recession fears had been subdued. The Atlanta Fed released a positive GDP report, and the threat of tariffs significantly diminished.

However, two important barometers of the US economic health were pessimistic today, signaling trouble for the dollar and a potential opportunity for Bitcoin.

Specifically, these two indicators are the OECD’s Economic Outlook and the ADP’s jobs report. The latter document claims that private sector hiring is at its lowest level in more than two years, prompting President Trump to pressure Jerome Powell to lower interest rates.

The OECD, on the other hand, was even more dire. It predicted that GDP growth in the US would fall from 2.8% in 2024 to 1.6% in 2025 and then decrease further in 2026.

A recession is defined by two or more consecutive quarters of reduced growth, so two years could be catastrophic. Global GDP growth rates are low, but the US is even lower. The OECD also predicted disproportionately high inflation.

US GDP Predictions. Source: OECD

Furthermore, a round of new tariffs on the EU and tech sanctions against China could exacerbate the brewing crisis even more. Nothing is certain, but there is a gamut of potential recession indicators impacting the market right now.

Nic Puckrin described the US’ situation and explained how it can benefit Bitcoin:

“The OECD has just put a number on one of investors’ biggest fears about the US – its growth outlook, which it now predicts will be lackluster at best over the next two years. If the US dollar was still clinging to hopes of a rebound before this, the OECD’s damning report has finally sounded its dealth knell,” Puckrin told BeInCrypto.

Puckrin went on to state a few other statistics, like the US dollar index (DXY) being down 9.3% year-to-date and falling. Morgan Stanley predicts another 9% in the next year.

Bitcoin has long been a potential recession hedge, and investors outside the US have already been shifting towards it. However, these trends explain why US firms are making the same choice.

Most importantly, BTC has been less volatile than usual lately, prompting US corporations to make major investments. Corporate whales like MicroStrategy are putting up new commitments, and massive ETF inflows present a revealing picture.

Earlier today, JPMorgan even opened a new service to facilitate institutional clients’ crypto exposure. These disparate data points lead to one conclusion.

“Companies are falling over themselves in the rush to prop up their treasuries with Bitcoin. As the US dollar continues to devalue, we’re going to see this shift happening more and more as investors scramble to protect their assets. With Bitcoin holding steady above $100,000 for 20 days and counting, it’s fast becoming the new safe haven,” Puckrin added.

Still, as Russia recently demonstrated, US corporations’ Bitcoin investments aren’t necessarily beneficial for everyday users or the DeFi ecosystem.

Nonetheless, this elevated demand can buoy the value of BTC, guaranteeing higher gains for current holders. As a possible recession looms, savvy crypto investors have a chance to secure stability and long-term growth.