The dollar plummeted, shocking the world; even the number one reserve currency did not escape the fate of being sold off.

In times of market panic, investors tend to flock to the safe dollar, but during the recent plunge in U.S. stocks, investors fled from the dollar — the dollar is facing the most severe trust crisis since Nixon's shock in 1971.

First, it is important to understand that the dollar has not acted as a safe haven this time because investors associate tariffs with recession, meaning tariffs will trigger an economic downturn, which will drag down the dollar. Furthermore, Trump's erratic behavior has been too dangerous, harming the credibility of the dollar. The recent depreciation of the dollar indicates that concerns over its currency status 'have left traces in the financial markets.'

Second, after the U.S. stock market plummeted on Thursday, the White House did not soften its stance. However, when the dollar plummeted 1.7% on Thursday (equivalent to a 4% drop in the stock market), discussions of market rescue emerged.

U.S. Treasury Secretary Yellen stated that the U.S. pursues a strong dollar policy, and we are taking all necessary measures to ensure the dollar remains strong in the long term.

U.S. Commerce Secretary Raimondo also stated that we have no plans regarding the dollar (implying no plans to weaken the dollar).

Many hope that Federal Reserve Chairman Powell will be able to 'hint at interest rate cuts' to soothe the market on Friday, but ultimately received a completely opposite answer. If Powell hints at rate cuts, it would be tantamount to sacrificing the dollar, which is how he approaches the issue.

Compared to the U.S. stock market, the importance of the dollar index is higher, as it represents global investors' confidence in the U.S. and serves as a barometer for global markets.

Third, the three pillars supporting the dollar are American Exceptionalism, high interest rates, and strong capital inflows. Due to the announcement of numerous tariffs, all three have been severely weakened and may potentially reverse.

* American Exceptionalism: has shifted to 'American Isolationism'

* High Interest Rates: It is currently a narrative of interest rate cuts

* Capital Inflow: Capital is flowing from U.S. assets to overseas markets, primarily to China and Europe. The outflow of funds from the U.S. may continue.

The structure and nature of the relationship between the dollar and global markets have changed, and financial markets are about to enter a phase of disorderly turbulence.#加密市场回调 $BTC