I know working professionals who keep complaining that they are struggling financially despite rising salaries.
I checked the Federal Reserve Economic Data (FRED) and found out that the average price of a pound of white bread has risen from $1.55 in January 2020 to $1.83 in January 2025. It is a jump of more than 18% within a span of three years.
Meanwhile, the U.S. dollar index , which calculates the value of the USD relative to a basket of foreign currencies, has fallen to 96.2, its lowest point since mid-February 2022.
Related: Tucker Carlson asks top economist if Bitcoin will replace declining U.S. dollar
Goldman Sachs says U.S. dollar is 'overvalued' by roughly 15%
Goldman Sachs warned in a report on Jan. 10 that it ultimately expects a "shallower dollar descent in 2026."
The 157-year-old bank said it expects the U.S. dollar to move sideways in 2026.
The dollar remains "overvalued" by roughly 15% even after the sharp fall in 2025, the banking giant said. If the U.S. suffers from "jobless growth" and the Federal Reserve slashes interest rates, it could lead to sharper depreciation of the dollar, the bank warned.
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Banking giant bets on institutional crypto adoption
As far as dollar depreciation is concerned, it is generally considered good news for assets like Bitcoin (BTC).
When people lose trust in the U.S. dollar, they tend to flock to assets like Bitcoin because they are considered hedge assets in the face of dollar depreciation.
But Bitcoin has failed to capitalize on the dollar depreciation thesis, falling more than 15% within the last three months.
Nonetheless, Goldman Sachs said that improving regulation and the emergence of use cases beyond trading are setting the stage for the next wave of institutional crypto adoption, CoinDesk reported early this month.
The passage of crypto legislation in the first half of 2026 would be especially significant as the midterm elections in November could delay progress, the bank said in its report.
Goldman Sachs says U.S. dollar is still dominant
While many commentators, such as Tucker Carlson, think that U.S. dollar debasement translates to a diminishing dollar dominance and make a case for Bitcoin to replace it, Goldman Sachs doesn't think so.
In the Jan. 10 report, the banking giant said the U.S. dollar's status as the world's reserve currency is not at risk despite devaluation.
"We think it is still important to distinguish between dollar depreciation and dollar dominance,"said Goldman Sachs in the report.
The bank said it has seen limited evidence of the displacement of the dollar's dominant global role in recent years and doesn't expect it to contribute to the dollar's performance on a day-to-day basis.
This story was originally published by TheStreet on Jan 28, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
