The weakening US dollar (DXY) has become a significant part of the US financial system’s long-term transition, as outlined by independent market analyst Lyn Alden. Alden argues that a weaker dollar may be necessary for the US to stabilize its financial system amidst mounting disruptions. This shift towards de-dollarization could benefit assets like Bitcoin and gold, which are well-positioned to thrive in the changing global monetary order. Sovereign wealth funds and various nations are already increasing their exposure to Bitcoin as the dollar’s global dominance diminishes. The US economy’s reliance on fractional reserve banking and the expansion of broad money through lending has led to a significant imbalance between debt and existing base money. The US holds trillions in dollar-denominated debt, while only a fraction of that amount exists in base money. The interplay between the US and the dollar in the global financial system is undergoing a long-term transition, with a potential shift towards a weaker dollar and a reduced monetary hegemony. The relationship between Bitcoin (BTC) and the DXY is inversely correlated, with Bitcoin becoming more attractive as the dollar weakens. Historical data shows that major divergences between Bitcoin and the DXY often signal trend reversals in Bitcoin’s price. As the US potentially weakens the dollar in the long term, Bitcoin could experience a new rally beyond its usual cyclical price action. In a post-dollar era, investment strategies may focus on neutral, high-quality reserve assets like gold and Bitcoin, which could structurally benefit from de-dollarization. Several sovereign entities are already accumulating Bitcoin, signaling a growing trend towards diversifying away from the dollar. As international trade deals increasingly settle in alternative currencies like the yuan and the euro gains strength against the dollar, the process of de-dollarization is actively unfolding. Bitcoin’s borderless and politically neutral nature positions it as a serious contender in the search for stable alternatives to settle trades and store value.