USD Safe-Haven Status Faces Scrutiny Amid Market Concerns – Coincu

Steve Englander of Standard Chartered and Erik Nelson at Wells Fargo express growing concerns over the USD’s safe-haven status following a Reuters survey conducted between April 30th and May 6th, 2025.

“I’m very worried. If you had asked me this question two months ago, I would have said that for the dollar, the stimulus was the most important thing, and flows—who knows whether they are really receiving income—were secondary. Now it is clear that the market is more concerned about the longer-term fiscal path.” – Steve Englander, Global Head of G10 FX Research at Standard Chartered

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Investor doubts about the USD’s role as a safe haven rose due to fiscal uncertainties, with shifts towards the yen and franc as preferred alternatives. A Treasury press release on economic policies also highlights the fiscal context impacting these perceptions.

Market reactions underscore a shift towards alternative safe havens such as the yen and Swiss franc, as broader economic uncertainties linger. The market is now increasingly apprehensive about the dollar’s role. According to Erik Nelson at Wells Fargo, “We are more bearish on the dollar in the second half of this year. More people will recognize the weak hard data in the United States, and the Fed may cut rates as priced by the market, the exit from US assets, and concerns about the Fed’s independence could re-emerge.”

Experts note immediate implications for market positioning. Erik Nelson of Wells Fargo suggests bearish sentiments for the dollar, while Brian Rose sees opportunities for the yen and franc as backup safeguards.

Bitcoin’s Role as “Digital Gold” During Currency Uncertainty

Did you know? In past instances, when confidence in fiat currencies waned, assets like Bitcoin, often dubbed “digital gold,” have seen increased interest as alternative diversifiers.

As of the latest data from CoinMarketCap, Bitcoin’s price is $94,034.92 with a market capitalization of $1.87 trillion. The market dominance stands at 63.99%. Its circulation is nearing the maximum supply of 21 million coins. Over the past 90 days, BTC’s price has experienced fluctuations, with a decline of 4.10%.

The Coincu research team indicates that looking ahead, fiscal uncertainties may continue to fuel interest in cryptocurrencies as investors seek diversification. Historical trends suggest Bitcoin often gains traction when conventional fiat options feel uncertain.