Bitcoin Poised for Dominance Amid Declining U.S. Dollar Purchasing Power

CoinMENA platform has forecasted that Bitcoin will maintain its strength over the coming months and years, driven by the declining purchasing power of the U.S. dollar and a growing shift toward hard assets as safe havens against monetary inflation.

Market data shows that Bitcoin surged by approximately 47% over the past year, surpassing the gains of gold, which rose by 42% during the same period — highlighting a growing trend of turning to digital currencies as a hedge against weakening traditional currencies.

Short-Term Volatility, Long-Term Uptrend

Despite the sharp price fluctuations Bitcoin has experienced since the beginning of 2025 — reaching highs near $108,000 before pulling back to $78,000 — the long-term trajectory remains bullish for the digital currency, as demand continues to outpace supply, a dynamic that naturally leads to price increases according to market fundamentals.

Experts point out that the expansionary monetary policies in the United States, including the large-scale printing of dollars, are eroding the real value of the greenback. Conversely, the appeal of scarce assets — such as Bitcoin, gold, and real estate — is rising, as they are seen as safe havens against the declining purchasing power of fiat currencies.

Analysts believe that this trend is likely to persist amid mounting economic pressures, boosting the potential for Bitcoin to achieve further gains, especially with expectations of additional interest rate cuts and growing institutional demand for digital assets.

Against this backdrop, Bitcoin is emerging as a strategic choice for investors seeking to safeguard their portfolios against monetary erosion, in an era characterized by economic uncertainty and rising inflation.