Trump blows up dollar, EVs kill OPEC – bank’s ‘outrageous’ predictions

Denmark’s Saxo Bank has released its annual list of “outrageous predictions,” considering some possible but unlikely events that could shake up global financial markets in 2025.

According to the investment bank’s outlook, next year the world will strive to find alternatives to the US dollar after the incoming Donald Trump administration slaps massive tariffs on imports, while cutting government spending with the help of an Elon Musk-run Department of Government Efficiency.

“The implications for the US dollar are dire for trade around the world, as it cuts off the needed supply of dollars to keep the wheels of the global USD system turning, ironically risking a powerful spike higher in the US dollar,” said Saxo’s chief macro strategist, John Hardy.

As a result the crypto market would quadruple to more than $10 trillion, while the dollar would tumble 20% against major currencies and 30% versus gold.

Analysts at the Copenhagen-based bank also predict that chip-maker Nvidia’s market value could balloon to double that of Apple, ‘supercharged’ with greater availability of its revolutionary 208-billion transistor Blackwell chip.

“With the intensifying AI arms race as no giant or even government wants to be left behind, and as AI data centre electricity costs have soared, the insatiable demand for the more powerful and yet less power-hungry Blackwell chips sees Nvidia taking the crown as the most profitable company of all time,” the bank said.

This could send Nvidia’s share price soaring from its already high level of nearly $139 to “well north” of $250, leading the market to question how high it can go.

Another event that could send shockwaves across global markets would be China unleashing a fiscal stimulus of 50 trillion yuan ($7 trillion) in 2025 and in the following years, to “reflate” its economy.

“Much of the spending goes directly into consumers’ pockets via e-CNY digital currency, so that it will be injected straight into the economy rather than to pay off debt,” the bank’s Chief Investment Strategist Charu Chanana wrote.

The measures could lead to a “strong reflationary impact” in China and the world, as well as higher commodity prices, according to the strategist.

In another unlikely prediction by the bank, the Organization of Petroleum Exporting Countries (OPEC) could become “irrelevant” next year amid soaring popularity and affordability of electric vehicles.

“With some members already cheating production quotas to grab what income they can and export demand falling, a majority of members quickly realise the jig is up. Amidst the bickering and in-fighting, key members leave. This consigns OPEC to the ash heap of history. Former members max out production to ensure market share, driving a large drop in oil prices,” Saxo wrote.

Other predictions for 2025 included the UK pound sterling erasing the post-Brexit discount against the euro, the US imposing a “huge” AI data center tax amid a power price surge, and the first fully functional human heart being bio-printed using 3D bioprinting technology.