Predictions that an emerging Fed crisis will cause the U.S. dollar to "fall” are fueling bullish bitcoin price

The dollar held to its losses on Tuesday after the Trump administration opened a criminal investigation into Federal Reserve Chair Jerome Powell, a move that threatens the central bank's independence and faith in U.

U.S. dollar slips as Powell probe fuels Fed independence fears; DXY, yields and major FX moves with BofA outlook on EUR, USD/JPY and risks.

The ICE U.S. Dollar Index, a measure of the greenback against a basket of six major peers, was weakening by 0.3% on Monday in reaction to the Department of Justice's probe into Federal Reserve Chair Jerome Powell.

Currency strategists expect the U.S. dollar to weaken in 2026 as concerns grow over Federal Reserve independence and the likelihood of further interest rate cuts.

The dollar fell over 9% in 2025, its worst annual performance since 2017. The declines reflect a volatile year for the U.S. economy, with investors likely facing another unpredictable 12 months.

The Canadian dollar clawed back some recent ‌declines against its U.S. counterpart on Monday as increased concerns about the independence of the Federal Reserve weighed on the greenback.

Heading into 2026, the US dollar (DXY) faces a complicated path driven by a conflict between the Fed and the government. Experts predict a "V-shaped" year for the currency. Read more

Trump’s capture of Venezuelan leader Nicolás Maduro, claim to that nation’s oil fields, and threats against other countries seemed primed to give the dollar another tug lower by threatening to rekindle concerns about the safety of US assets.