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Both the US dollar and Bitcoin could be in jeopardy thanks to continued market uncertainty regarding Donald Trump's aggressive tariffs, fulfilling one billionaire investor's prediction that the former could be on the verge of 'total collapse'.
Markets have experienced a rollercoaster ride over the last year, as US President Donald Trump's return to the Oval Office has caused unprecedented volatility in key areas.
One major trend that was immediately observed was the sharp spike in Bitcoin and other popular cryptocurrencies, as the incoming president promised to place great emphasis on the alternative economy.
Trade wars, power struggles, and geopolitical conflicts have seen both the US dollar and Bitcoin drop in recent months, showing worrying signs for the future if the stock market has anything to say.
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As reported by Forbes, one billionaire investor has continued to predict the demise of the dollar, as Ray Dalio – founder of hedge fund Bridgewater Associates – claims it won't be considered the world's reserve currency for much longer.
It's now happening. The existing fiat monetary order, the domestic political order, and the international geopolitical order are all breaking down, so we are at the brink of wars. It all is happening because of the Big Cycle that is driven by the five big forces I've described…
— Ray Dalio (@RayDalio) January 19, 2026
Sharing his thoughts on X, Dalio asserted: "The existing fiat monetary order, the domestic political order, and the international geopolitical order are all breaking down, so we are at the brink of wars."
Dalio points toward what he calls the 'five big forces' as to why this is happening, which he indicated are economic cycles, domestic disorder, great power conflicts, acts of nature, and technological development.
Lack of confidence in the United States as the single leading global power is paired with the growing strength of China to create a precarious position for the US dollar.
This is also reflected in Bitcoin, as while some investors predicted that the US invasion of Venezuela (and subsequent control of its oil reserves) would cause the coin's price to skyrocket, the opposite has happened, with all gains made in 2026 effectively wiped out.
Over $5,000 has been wiped from Bitcoin's value since a sharp drop took place on January 18, which coincides with the announcement of further NATO-targeted tariffs from Trump amid opposition to his attempted takeover of Greenland.
While President Trump's confidence in crypto saw prices soar this time last year, that same emphasis has had the opposite effect as investors use the coin to reflect their lack of confidence in the nation, as explained by FxPro chief market analyst Alex Kuptsikevich.
"Donald Trump's intention to turn the US into the world's crypto capital has made crypto a kind of American asset," he illustrates. "Therefore, the return of the 'sell America' trade quickly pulled the rug out from under the Bitcoin bulls."
