Dalio: Dollar Collapse Sparks Gold Rally, Bitcoin Plunges Now

Trump tariff threats spark dollar selloff — gold hits record as bitcoin tumbles below $90,000

  • Bitcoin fell sharply overnight from nearly $96,000 to just over $90,000, then slipped under $90,000.
  • Gold reached a fresh record high as the U.S. dollar weakened after tariff threats from Donald Trump.
  • Ray Dalio warned the U.S. dollar’s decline signals a broader breakdown in the global monetary order.
  • Analysts raised U.S. PCE inflation forecasts to about 2.8%–2.9%, and BNP Paribas said the PCE reading will be “significantly” higher than recent CPI figures (seen).
  • Traders expect further bitcoin downside without buyers, with support cited near $88,000 amid rising geopolitical uncertainty.

On January 19–20, markets saw a sharp drop in the Bitcoin Price and a record high in gold after Donald Trump threatened tariffs on several trading partners and Nato allies over Greenland, prompting a U.S. dollar selloff and swings across commodities and crypto.

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Bitcoin fell from almost $96,000 per coin to just over $90,000 within minutes and later dipped below $90,000, giving up most of its 2026 gains. The Dollar Index traded back under 99.00, and gold and silver hit record levels as investors moved into scarce assets.

Ray Dalio, founder of Bridgewater Associates, wrote on X that the dollar’s weakness shows his predicted collapse of the dollar as the global reserve currency is “happening now” and that several global orders are “breaking down.” He posted, “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.” He also pointed to a 2023 video describing shifts in global power.

Analysts at Barclays and Morgan Stanley raised forecasts for December U.S. Personal Consumption Expenditures (PCE) to about 2.8%–2.9%. BNP Paribas’s Andy Schneider wrote in a note seen by Reuters that the PCE reading will be “significantly” higher than last week’s 2.7% consumer price index (CPI). (PCE is the Federal Reserve’s preferred inflation measure; it tracks consumer spending and prices.)

Market analysts linked the moves to tariff-driven dollar weakness. David Morrison of Trade Nation said the Dollar Index “snapped sharply lower to trade back under 99.00.” David Wilson, director of commodities strategy at BNP Paribas, said gold at $5,000 per ounce “looked like a big target” and is now within sight.

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Crypto analysts noted geopolitical strain has weighed on risk appetite. Alex Kuptsikevich of FxPro said, “Bitcoin is taking a double hit from tariffs.” Peter Schiff posted on X, posted, “Get ready for unprecedented stagflation.” Nic Puckrin, co-founder of the Coin Bureau, said markets are likely to see more downside unless buyers return, with “strong support around $88,000.”

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