“We continue to believe the risks of investors being blind-sided by such a non-linear sell-off in the dollar continue to rise,” Stephen Jen, chief executive and co-chief investment officer of Eurizon SLJ Capital, and economist Joana Freire warned in a note seen by MarketWatch and pointing to the recent sudden spike in the value of the Taiwan dollar and other Asian currencies that they warn could be a prelude to a dollar sell-off.

“There will be others, we predict,” the pair wrote, adding, “the overhang of liquid dollar holdings is just too large if the dollar weakens, the Fed cuts interest rates, and China stages a cyclical rebound.”

The Fed, which left rates on hold this week, is widely expected to begin cutting interest rates this summer after putting the loosening cycle begun in September on hold, with expectations growing for cuts totaling 75 basis points in 2025.

U.S. trading partners could start dumping the massive stores of dollars and dollar-denominated assets they have accumulated since the Fed flooded the market through Covid-era lockdowns, the analysts warned, putting the number of at-risk dollars held by China, Taiwan, Malaysia, Vietnam and other major Asian exporters at $2.5 trillion.

Meanwhile, some think a sell-off of the dollar and U.S. assets would flow into bitcoin, which has rebounded back to near its all-time price of almost $110,000 through May.

“The dominant story for bitcoin has changed again,” Standard Chartered Bank’s head of crypto research Geoff Kendrick wrote in an emailed note.

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“It was correlation to risk assets. It then became a way to position for strategic asset reallocation out of U.S. assets. It is now all about flows. And flows are coming in many forms,” Kendrick wrote, pointing to bitcoin spot exchange-traded funds (ETFs) inflows, U.S. states that are passing laws allowing their treasuries to hold bitcoin and sovereign wealth fund and pension funds tiptoeing into bitcoin.

“I apologise that my $120,000 second quarter target may be too low,” Kendrick added.

Other bitcoin price bulls are even more upbeat, with Miller Value Partners chief investment officer and chairman, Bill Miller IV, telling CNBC the bitcoin price will keep climbing until it eclipses gold’s $20 trillion market capitalization.

“Bitcoin’s back in the six-figures with a lot of room to go. If you compare its primary functional use case, a check and a balance on the lack of accountability in fiat unit creation, we still have a long way to go,” Miller said, predicting bitcoin’s “functional superiority” will push it to a price of $1 million per bitcoin.