Strong dollar pushes down gold, silver and Bitcoin

The US dollar, also known as the ‘greenback’, is the big winner among fiat currencies during the first half of 2026. As silver, gold, and Bitcoin are all priced in dollars and the Fed is preparing to raise interest rates, the dollar’s strength is pushing down the value of gold, silver, and Bitcoin.

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Earlier this week, the price of gold fell below the psychologically significant $4,000 mark for the first time since November 2025, while Bitcoin dropped to nearly $58,000 per coin. Silver has already lost more than half of its value compared to its January peak.

All this is caused by two key market factors. First, vast amounts of investor capital are being withdrawn from gold, silver, and Bitcoin to be re-invested in AI-related stocks; second, we are faced with a very strong dollar in 2026.

The ‘debasement’ trade which was super popular last year, whereby investors bet that the value of fiat currencies would fall due to rising government spending, is evidently not working in 2026.

This strong dollar is a reaction to the losses the ‘greenback’ recorded in 2025 against many other fiat currencies. With the expectation that the Fed will likely raise interest rates again, the price of the US dollar is rising, bad news for precious metals and for Bitcoin alike.