When governments ramp up spending, the money supply balloons, pushing prices higher across the board. That's inflation doing its thing. And when inflation picks up steam, it erodes the purchasing power of the dollar.

Here's the kicker: a weaker dollar typically boosts demand for alternative assets. Investors start looking beyond traditional currency holdings, which is exactly why crypto often moves inversely to dollar strength. The chain reaction is simple but powerful—fiscal expansion → rising prices → currency deterioration → capital seeking alternatives.

This dynamic has been playing out in markets for years now, and understanding this flow helps explain why periods of dollar weakness often coincide with renewed interest in Bitcoin, Ethereum, and other crypto holdings. It's not magic; it's just how the system works.