Crypto Market to Reach $10T, USD to Drop 30% against Gold: Saxo’s “Outrageous Prediction”

Saxo Bank predicts that the second Donald Trump administration will devastate the US dollar in 2025, ultimately benefiting the growing cryptocurrency market. Does this sound extreme? These predictions are part of Saxo’s annual “Outrageous Predictions,” which outline outcomes that are improbable but occasionally become reality.

Saxo also clarified that the “Outrageous Predictions” do not represent its official market forecasts.

Trouble Ahead for USD?

The bold forecast about the US dollar came after the currency gained strength following Trump's victory as the 47th President of the United States. However, according to Saxo, potential massive tariffs on imports and budget cuts by the Elon Musk-led Department of Government Efficiency (DOGE) will severely harm the US dollar.

Additionally, the predictions include a 20% decline in the US dollar against major currencies and a 30% drop against gold. Meanwhile, the cryptocurrency market is expected to thrive, with its total market capitalisation potentially quadrupling to exceed $10 trillion.

“The implications for the USD are dire for trade around the world, as it cuts off the needed supply of dollars to keep the wheels of the global USD system turning, ironically risking a powerful spike higher in the USD,” said Saxo’s Chief Macro Strategist, John Hardy.

Interestingly, Saxo accurately predicted the rise of Bitcoin in 2017, when the crypto market was still nascent but experienced massive growth in a short time.

While Saxo foresees trouble for the USD, it expects a surge in the British pound. According to the prediction, the GBP will climb to 1.27 against the EUR, reclaiming its pre-Brexit levels.

Nvidia to Dominate

Another bold prediction includes a massive boom for Nvidia, the chip maker currently dominating the stock market. The company’s growth will be fuelled by its AI-focused Blackwell chip.

According to Saxo, Nvidia shares will surpass $250 before regulators question the company’s monopoly, potentially tempering its growth outlook.

“It surpasses Apple’s record USD 105 billion in profits next year, and with far faster growth baked into expectations, its market cap nearly doubles again, making it twice the size of Apple,” Hardy added. “Apple and other tech giants’ valuations suffer in relative terms, as their profitability is weighed down by the need to build enormous data centres to keep up in the AI gold rush.”

This is the first year the Danish broker has published the “Outrageous Predictions” without Steen Jakobsen, the architect behind these bold forecasts. Jakobsen retired as Saxo’s Chief Economist and Chief Investment Officer earlier this year after spending 20 years with the company.