Ken Griffin, founder and CEO of Citadel, has expressed concern over the increasing trend of investors viewing gold, silver, and Bitcoin (BTC) as safer assets than the US dollar (USD). According to Griffin, there is a noticeable shift of capital away from dollar-denominated instruments, reflecting rising concerns about US sovereign risk and a desire among market participants to diversify portfolios.
📊 Investors Seeking to “De-Dollarize”
In an interview with Bloomberg, Griffin highlighted that investors are actively searching for ways to reduce exposure to the dollar and mitigate political and economic risks. He warned that this trend is unprecedented outside periods of global market turbulence, signaling potential stress on the American financial system.
⚖️ Gold, Silver, and Bitcoin Rally
The growing demand for alternative assets has propelled gold to record highs, fueled by expectations of Federal Reserve rate cuts and ongoing US fiscal concerns. Silver and Bitcoin have also attracted attention as part of a “devaluation trade” strategy — investments aimed at benefiting from a weakening dollar.
Griffin described current US monetary measures as resembling crisis-era stimulus, which he likened to “sugar-doped euphoria” that can push markets higher in the short term but may have long-term consequences for financial stability.
🌐 Broader Economic Concerns
Beyond market trends, Griffin discussed H-1B visa policies, noting that a one-time fee of $100,000 per worker would have minimal impact on business. His greater concern is that talented Indian students may seek opportunities in other countries, potentially affecting the competitiveness of the US labor market.
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- Investor preference is shifting toward gold, silver, and Bitcoin as safe-haven assets over USD.
- The trend reflects growing sovereign risk concerns and attempts to diversify portfolios.
- Current US monetary and fiscal policies may boost short-term market optimism but carry long-term risks.
- Broader economic implications, including talent migration, could challenge US competitiveness.
