devaluation

According to Bitcoin Magazine, Blue Macellari, the head of digital assets at asset management giant T. Rowe Price, stated in an interview with Bitcoin Magazine that Bitcoin has now become the central topic of discussion regarding currency devaluation. She pointed out that bond vigilantes are making a comeback, U.S. Treasury financing is shifting from foreign buyers to domestic buyers, and the debt situations in Japan and Italy are not comparable to the U.S. buyer base.Macellari has 20 years of experience in emerging market sovereign debt and distressed debt investment, and later was responsible for establishing T. Rowe Price's digital asset business. In the interview, she reviewed the evolution of internal discussions on digital assets within the institution, the considerations for launching actively managed multi-token ETFs, and discussed the trends of asset management tokenization and automation, as well as the liquidity fragmentation risks brought by 24/7 trading.Additionally, Macellari assessed whether the demand for stablecoins under the GENIUS Act represents a substantive change or is merely wishful thinking, and she believes that devaluation trading has indeed driven institutional allocation to Bitcoin. She also stated that volatility can serve as a portfolio tool, and there are significant generational differences in Bitcoin allocation.

"White-haired Stock God" Serenity posted on platform X that a piece of information in Oracle's (ORCL) financial report is favorable for Nebius (NBIS) and IREN (IREN). Oracle stated that all renewed GPU computing power has been resold, with prices increasing by 20% compared to previous contracts, and most related equipment has been used for over 4 years. Serenity believes that this situation once again counters "Big Short" Michael Burry's argument about the rapid depreciation of GPUs, while also benefiting Nvidia (NVDA) and the Neocloud computing sector.

Bloomberg ETF analyst Eric Balchunas stated that gold and Bitcoin ETFs have returned to the top ten funds by trading volume, which may indicate that "devaluation trades" are replacing the AI craze.Balchunas pointed out that this phenomenon reflects the market's capital flow shifting from AI-related assets to asset classes like gold and Bitcoin, which are seen as hedges against currency devaluation.

According to Criptonoticias, Tether CEO Paolo Ardoino stated on August 23 that developing countries such as Venezuela, Argentina, Bolivia, and Turkey are increasingly using USDT, primarily for domestic and cross-border trade, and as a digital dollar and value storage tool in situations of rapid depreciation of local currencies, cash shortages in dollars, or restricted financial systems.Among them, small and medium-sized enterprises in Venezuela use USDT to settle import and export businesses, Bolivia has used it for commercial transactions including fuel procurement, Argentina's street economy and peer-to-peer markets widely use USDT for value preservation and exchange, and residents in Turkey also use USDT to cope with ongoing inflation.

According to Jinshi, U.S. Treasury Secretary Yellen stated that the level of the yen exchange rate could trigger other issues, including depreciation.

Cryptocurrency analyst Darkfost published an on-chain indicator interpretation on the X platform, analyzing the current profit and loss structure of Bitcoin positions in the market through the core economic indicator TMM (True Market Mean) and the AVIV ratio. The TMM indicator excludes long-term untransferred and partially permanently lost dormant Bitcoins, only accounting for the average holding cost of actively traded chips in the market, with the current value around $76,700. This level has become a significant price resistance, as during the May market, when the price reached this point, many investors exited to break even.The accompanying AVIV (Active Value / Investor Value) ratio currently hovers around 0.8, within the valuation discount range, indicating that the average floating loss for all active BTC investors is 20%. Historically, at the bottom of bear markets, this indicator has dropped to 0.5 to 0.6, corresponding to investor losses of 40%-50%. The current loss magnitude has not yet reached extreme bear market levels.The analyst also pointed out that even with a large influx of institutional funds and Bitcoin ETFs injecting massive liquidity in this cycle, Bitcoin still follows its own cyclical patterns. In the short term, there is no need to wait for the indicators to drop to historically extreme low levels before a rebound occurs, but it is necessary to acknowledge the current pressured environment of widespread losses among market participants.

J.P. Morgan analysts indicate that investors are continuously withdrawing from the so-called "currency devaluation trades," with gold-related allocations continuing to decline, while the pace of Bitcoin's retreat has further accelerated recently.The report notes that for the week ending June 5, approximately $20 billion flowed out of gold ETFs; Bitcoin ETFs have seen a gradual increase in outflows for four consecutive weeks. In the futures market, institutional investors are also reducing their exposure to gold and Bitcoin, indicating that both retail and institutional funds are lowering their allocations against inflation, currency devaluation, and geopolitical risks.J.P. Morgan believes that Bitcoin had previously become a primary expression of "currency devaluation trades" since the Middle East conflict, but it has reversed since early May and has further weakened recently. Meanwhile, the decline in liquidity in the ETF and futures markets has also amplified Bitcoin's price correction.Analysts added that whether the crypto market can improve in the second half of the year still depends on two key factors: whether crypto treasury companies can provide clearer arrangements for dividend payments, and whether the U.S. Clarity Act can be approved.

According to Bitcoin News, Strive CEO Matt Cole stated that the depreciation of fiat currency will continue to accumulate over time, and in this context, there is no better scarce digital commodity than Bitcoin.

According to CoinDesk, JPMorgan analyst Nikolaos Panigirtzoglou and others stated that as signs of easing tensions in the Middle East emerge, investors are gradually withdrawing from the Bitcoin and gold markets. The "devaluation trade" that had driven demand for both is losing momentum.In the past two weeks, both Bitcoin and gold-related ETFs have seen significant outflows, and institutional positions in the CME futures market have also weakened simultaneously. This trend indicates that investors are retreating from the macro hedging trades that had become popular due to inflation concerns and global instability, and it is not that Bitcoin funds are shifting to gold, but rather that both asset classes are facing a simultaneous decline in demand. Since the Iran conflict, Bitcoin has been a major representation of the "devaluation trade."

J.P. Morgan analysts, including Nikolaos Panigirtzoglou, stated that as signs of easing tensions in the Middle East emerge, investors are gradually withdrawing from the Bitcoin and gold markets. The "devaluation trade" that previously drove demand for both is losing momentum.In the past two weeks, both Bitcoin and gold-related ETFs have seen significant capital outflows, and institutional positions in the CME futures market have also weakened concurrently. This trend indicates that investors are retreating from the macro hedging trades that became popular due to inflation concerns and global instability, and it is not a case of Bitcoin funds shifting to gold; rather, both asset classes are facing a simultaneous decline in demand. Since the Iran conflict, Bitcoin has been a major representation of the "devaluation trade."

According to The Block, JPMorgan analysts have stated that Bitcoin is gradually surpassing gold as a currency devaluation hedge tool following the Iran conflict.Analysts led by Managing Director Nikolaos Panigirtzoglou noted that Bitcoin ETFs recorded inflows for the third consecutive month in May, while gold ETFs are still struggling to recover the funds that flowed out during the outbreak of the Iran conflict in March. This indicates that since the conflict began, retail investors are choosing Bitcoin over gold for devaluation hedge trades.The analysts stated that Bitcoin purchases are not limited to retail investors through ETFs. JPMorgan's position proxy indicators based on CME Bitcoin futures and offshore perpetual futures have also reached new highs, indicating that institutional investors are similarly increasing their exposure. The momentum signals for Bitcoin and gold have also rebounded since the conflict began. Investors are also indirectly buying Bitcoin through Strategy, with the company's purchase volume potentially reaching around $30 billion this year if the current pace is maintained.

According to CoinDesk, Liz Truss, the former Prime Minister of the UK with the shortest term, stated in an interview that the UK economy is on a "very negative trajectory," with high taxes, excessive regulation, and energy costs making it so that the risks for entrepreneurs "often do not justify the returns." She attributed inflation and wealth inequality to "currency devaluation" and pointed out that discussions about monetary policy within the government have become "taboo," a phenomenon that is "quite disturbing."Truss expressed that she is "very interested" in Bitcoin, believing it to be an important tool against currency devaluation and to resist centralized financial control, and revealed that she had come into contact with Bitcoin as early as during her time as Chief Secretary to the Treasury.She is currently actively preparing for CPAC UK, planning to hold a three-day conference to unite entrepreneurs and activists to promote the "sovereignty and freedom" movement, stating bluntly: "There are only two choices, either sink or change completely."

According to Jinshi reports, due to market concerns about U.S. President Trump’s intention to seize Greenland from Denmark, relations between the U.S. and Europe are tense, and the dollar is weakening.Trump stated that starting from February 1, he will impose a 10% tariff on several European countries, and the European Union is considering retaliatory tariff measures. Analysts at Barclays Bank pointed out that the tension may prompt foreign investors to increase hedging against the risk of dollar depreciation, and the dollar may continue to be under pressure in the short term.

Galaxy research director Alex Thorn stated on the X platform that for Bitcoin to achieve positive returns in 2025, its price must close above $93,389 on the last day of the year. However, the sentiment among Bitcoin investors is undoubtedly quite low at the moment, though some portfolio managers may reconsider Bitcoin in January 2026. This year, Bitcoin has received many positive news, and this "good news" seems to have become the norm. Despite a lackluster performance at the end of the year, the performance of U.S. Bitcoin ETPs has been much more stable, with cumulative inflows only down 9% since reaching a historical high of $62 billion in October, further highlighting the increasing maturity of this asset class.Galaxy believes that it may only be a matter of time before Bitcoin follows gold as a hedge against currency devaluation, potentially igniting interest from several large asset allocators and central banks.

ChainCatcher news, according to Jinshi reports, the political and fiscal uncertainties of the world's largest economies (including the United States, France, and Japan) have intensified, leading investors to sell off assets in dollars, euros, and yen, and turn to alternative assets such as Bitcoin, gold, and silver. Wall Street refers to this phenomenon as "devaluation trading," a strategy that investors adopt to protect themselves from the effects of currency devaluation. Although opinions on this trend vary, its supporters believe that this phenomenon is gaining momentum, reflecting the ongoing issue of rising government debt.

ChainCatcher news, BitMEX co-founder Arthur Hayes stated that the new popular narrative in TradFi is "debasement trade." It took them nearly twenty years to notice. Don't think they will forget about this because of Bitcoin's "four-year cycle." Now it's the bankers' turn to sell clients derivatives of gold, cryptocurrencies, and tech stocks.The so-called "debasement trade" refers to investors seeking to protect wealth or gain returns by allocating asset portfolios in an environment of currency devaluation. It typically involves investing in asset classes that perform well during periods of inflation or currency devaluation.

ChainCatcher news, Bitwise's latest report expects that the inflow of the U.S. spot Bitcoin ETF will hit a record in the fourth quarter of this year, exceeding the total inflow of $36 billion in 2024.Bitwise Chief Investment Officer Matt Hougan stated that the Bitcoin ETF will benefit from three catalysts: the entry of wealth management firms, the recent surge in Bitcoin prices, and the effectiveness of "devaluation trades." It is anticipated that many Wall Street advisory firms will add gold and Bitcoin to client portfolios to capture stronger-performing assets.

ChainCatcher news, according to Daily Hodl, macro expert Luke Gromen stated that the rise of Bitcoin treasury companies is a reasonable response to the U.S. government's ongoing devaluation of the dollar. In his latest video update on YouTube, Gromen pointed out that investors are reacting to a massive financial bubble that has shifted from the stock, banking, and real estate markets to the treasury market.He believes that the only way for the U.S. government to maintain the bubble is by devaluing its debt through inflation, rather than restoring fiscal health by facing default or severe economic recession. In light of this reality becoming clear, it makes sense for many companies to create shareholder value by leveraging Bitcoin's strict supply cap.

ChainCatcher news, according to Cointelegraph, GameStop CEO Ryan Cohen believes that Bitcoin is a hedge against currency devaluation. Ryan Cohen stated, "If Bitcoin becomes digital gold, there is still more room for growth."