Billionaire Investor Sees Dollar Crash If Key Support Breaks

Jeffrey Gundlach believes the greenback is tiptoeing along its final line of support. In a recent webcast, the DoubleLine Capital founder highlighted a chart that links the dollar index’s 2011 trough near 72 to its 2021 low around 89.

That diagonal has contained every bout of weakness for fourteen years, yet the DXY now hovers just above 98—barely one point above the level that, in Gundlach’s view, would inaugurate a bona fide bear market.

The billionaire bond investor noted the index’s long-running pattern of lower highs that dates back to the Plaza Accord era. If the current floor at roughly 97 gives way, he projects a spiral that could drag the dollar below its 2011 nadir, amounting to a decline of roughly 25 percent.

“That would mark the real beginning of a dollar bear market,” he told listeners, calling the prospect “surreal.”

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Gundlach added that the unusual behaviour of U.S. stocks, Treasuries, and the dollar this year reflects deeper anxiety over Washington’s ballooning deficits.

Foreign holders of trillions in U.S. assets, he warned, may reconsider their exposure if confidence in America’s fiscal trajectory erodes further—potentially accelerating any slide in the currency.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.