Now that the dollar has slumped to a three-year low, this shift is changing the way crypto investors are strategizing. Increased dollar weakness and continued domestic economic uncertainty are pushing investors to seek greater portfolio diversification. Trade policies and other international efforts to reduce the world’s reliance on the dollar drive this trend. This shift involves focusing on Bitcoin as a core holding, exploring mainstream coins for growth, and allocating a portion to high-risk, high-reward emerging sectors.

Bitcoin as a Core Holding

The dollar index has fallen close to 11 percent since January 2025, currently back down to about 98. In part because of this volatility, investors are keenly looking for non-volatile, liquid alternatives. Bitcoin is quickly becoming the go-to commodity for investors. Due to its solid liquidity and wide market adoption, it usually accounts for 60-80% of the core holdings in cryptocurrency investment portfolios. This approach would help give a more stable underpinning in the face of dollar volatility.

Bitcoin’s decentralized nature is what makes it an attractive core holding. Further, it can act as a hedge against volatility in other currencies. Its supply is strictly limited and adoption is surging—which increases its perceived value as a store of wealth. That’s drawing in new speculative investor interest looking to hedge against the deteriorating dollar risks. This prioritization of Bitcoin is part of a larger story of gravitating towards known, trusted cryptocurrencies in the backdrop of economic turmoil.

Institutional investors are increasingly directing large sections of their portfolios towards Bitcoin. This trend harkens back to Bitcoin’s place as the original and foundational asset of the entire crypto market. This strategy helps institutional investors hedge their bet, keeping them in the game while pursuing other avenues to enhance economic and financial returns. By making Bitcoin a priority, investors set themselves up to strike the right balance between risk and stability in their crypto investments.

Growth Allocation in Mainstream Coins

Not just for Bitcoin– investors are putting 10 to 20% of their portfolio into mainstream alternatives (standard coins) ranging from XRP to SOL to ADA. These currencies are considered to be the next best thing and big things are expected from them. Additionally, they’re often viewed as being less risky than newer emerging altcoins.

No wonder mainstream coins stand to gain especially from national cryptocurrency strategies, with governments around the world testing and rolling out their own digital currencies. Their foundation networks and proven enterprise use cases provide clear paths to being integrated into national financial systems. This prospect of more widespread adoption makes them even more attractive as growth-oriented investments.

That’s because positivity around investing in the mainstream coins is actually a strategic approach to investing. It positions you to benefit from the increasing acceptance and integration of cryptocurrencies into our financial system. These coins offer the best possible combination of stability and growth potential. They are perfect for yield-seeking investors looking to reduce their overall risk profile but still earn long-term returns. The spotlight on XRP, SOL, ADA and other cryptocurrencies illustrates the belief in their blockchain technology and long-term market positioning.

High-Risk, High-Reward Opportunities

For those with a higher risk tolerance, 5-10% of the portfolio may be allocated to emerging sectors like AI and meme coins. These investments are considered high-risk, high-reward opportunities. Like all deep tech startups, they do represent the opportunity for big returns but with much added uncertainty.

AI and meme coins are the new frontier of the cryptocurrency market, propelled by innovation and community hype. With the risk of increased volatility comes the potential for exponential growth. Successfully investing in these sectors means doing your homework and having a real pulse on what’s going on in the market.

President Trump returned fire – first with tariffs of his own, then by threatening to fire Fed Chair Powell. Together, these actions have led to a weakened dollar. Second, countries such as China and Russia have long campaigned for the dollar’s relegation from international commerce. These factors only exacerbate the conditions driving investormania towards alternative investments such as high-risk, high-reward cryptocurrencies.