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Bitcoin is becoming more and more popular among investors as a digital gold substitute as global de-dollarisation picks up steam. Bitcoin's decentralised structure and limited supply make it a strategic hedge against fiat currency risks, according to Mike Kennedy, Arbitrage Director at Invest Mutual.
Bitcoin’s Role in a Shifting Global Financial Order
London, United Kingdom, Nov 11, 2025, The global financial markets are undergoing a profound transformation as major economies rethink their reliance on the US dollar. From China and Russia to Brazil and parts of the Middle East, governments are increasingly seeking alternative trade settlements in non-dollar currencies. This movement, often referred to as de-dollarisation, is no longer a theoretical discussion but an unfolding reality. At the centre of this changing narrative is Bitcoin, increasingly recognised as digital gold and a credible hedge against global monetary instability.
Mike Kennedy, Arbitrage Director at Invest Mutual, has been closely tracking these developments. Drawing on years of experience in global macroeconomics and trading strategies, Kennedy has identified Bitcoin’s growing role as both a hedge and a strategic asset. “De-dollarisation isn’t simply about politics, it’s about sovereignty,” he explains. “Nations want independence from US monetary policy, and investors are looking for assets that are beyond the reach of central banks.”
Although the US dollar still holds a strong reserve position, Kennedy notes that its dominance has been steadily declining for two decades. Meanwhile, central banks have been stocking up on gold, a traditional store of value. Now, Bitcoin is emerging as its digital counterpart, offering advantages that physical gold cannot match. With its capped supply of 21 million coins, decentralised structure, and resistance to inflationary policies, Bitcoin provides transparency and confidence to investors searching for an alternative asset.
Institutional Adoption and Market Maturity
Institutional adoption has become one of the most telling signals of Bitcoin’s new role in the financial system. According to Kennedy, there has been a marked shift in client portfolios, with institutional investors no longer treating Bitcoin as just a speculative gamble. Instead, they are viewing it as a legitimate long-term hedge against currency depreciation. Pension funds, hedge funds, corporate treasuries, and even some sovereign wealth funds are incorporating digital assets with a more strategic outlook.
Kennedy also points out the psychological dimension of this adoption. “Bitcoin isn’t just a financial tool, it’s a statement of independence in an era of inflation, political instability, and declining trust in centralised institutions,” he says. This emotional connection, coupled with the growing legitimacy from institutional players, is accelerating mainstream acceptance. Younger generations, more digitally native and open to technological shifts, are expected to drive this momentum further, blurring the lines between traditional finance and digital assets.
Concerns around Bitcoin remain, ranging from regulatory uncertainty to energy consumption and volatility, but Kennedy sees these challenges as gradually being addressed. Major mining operations are transitioning to renewable energy, institutional-grade custodial solutions are mitigating theft and hacking risks, and governments worldwide are introducing clearer frameworks to regulate digital assets. Far from being obstacles, Kennedy views these developments as steps toward greater stability and maturity in the market.
Arbitrage and the Post-Dollar Financial Order
Beyond its role as digital gold, Kennedy emphasises the opportunities in arbitrage trading. Because Bitcoin is a global currency, price differences between exchanges and regions create consistent opportunities for profit.
The parallels between rising global gold reserves and growing Bitcoin demand are striking, Kennedy argues. As central banks diversify their holdings to hedge against a weakening dollar, market sentiment toward Bitcoin has simultaneously strengthened. He does not see this as a coincidence but as a reflection of the same underlying dynamic: a collective search for alternatives to dollar dominance. In his words, “Gold dominates the physical world, and Bitcoin leads the digital age. Together, they represent the twin anchors of a post-dollar financial order.”
Ultimately, Kennedy views Bitcoin not as a passing trend but as a structural shift in how value is defined in the 21st century. Just as gold established itself as a timeless store of value, Bitcoin is carving out its role as the digital equivalent. For investors navigating an uncertain geopolitical and monetary environment, it represents both a hedge and a symbol of financial independence.
“In the end,” Kennedy concludes, “Bitcoin’s role as digital gold is no longer a theory, it’s becoming a financial reality.”
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