Questioning the us dollar's status as a safe asset...bitcoin emerges as an alternative

Major global banks are raising concerns about the role of the US dollar as a safe haven asset. Financial institutions, including Wells Fargo and Standard Chartered, warned that the value of the dollar could be shaken as uncertainty in the US economy grows.

According to a survey conducted by Reuters from April 30 to May 6, about 55% of responding forex strategists questioned whether the US dollar could properly function as a safe haven asset amid economic uncertainty.

Wells Fargo's macro strategist Erik Nelson analyzed, "Dollar weakness is expected in the second half of the year," adding, "If US economic indicators actually slow down and the Federal Reserve lowers interest rates as the market expects, capital flight from US assets will accelerate." He also warned of the possibility of growing doubts about the independence of the Federal Reserve.

Steve Englander, head of G10 FX Research at Standard Chartered, also expressed doubts about the dollar's role as a safe haven. He expressed concern, saying, "The US government's fiscal situation is deteriorating, and large-scale fiscal deficits are continuously expanding," adding, "Investors may lose trust in this."

Englander likened the US fiscal deficit to "betraying a friend's trust," emphasizing that if international trust collapses, the status of the dollar could also be shaken. He explained, "Just two months ago, the market focused solely on stimulus measures, but now concerns about the long-term fiscal health of the US have grown much greater."