Up to 70% of liquidation proceeds flow directly into USD in risk-off conditions.
When risk comes out of the system—crypto, gold/silver, SaaS, anything crowded and mark-to-market sensitive—the proceeds don’t “disappear.” They consolidate into what can actually clear and settle at scale: dollars and dollar-like liquidity. That’s why risk-off often looks like a USD bid even when the selling starts somewhere else.
The dollar isn’t acting as a speculative trade; it’s acting as the global margin account—the collateral language every desk can use instantly to reduce exposure, meet funding needs, and wait for the next re-entry.