Bitcoin
has surged to new all-time highs above $123,000 and simply logged its highest-ever weekly shut at $119,500, following one other file weekly shut the week earlier than. Yr to this point, BTC is now up round 30%, pulling forward of gold which has gained roughly 27% throughout the identical interval.
In keeping with evaluation by Charlie Bilello, chief market strategist at Inventive Planning, bitcoin and gold are the highest two performing property to this point in 2025. Bilello notes, “We’ve by no means seen these two within the primary and quantity two spots for any calendar yr.”
Nevertheless, there’s a draw back to having two largely unproductive property because the yr’s greatest performers. When bitcoin and gold lead the pack, it typically alerts investor nervousness or disaster circumstances relatively than confidence within the broader financial system.
In idea, productive capital allocation ought to be rewarded, however these developments danger discouraging funding in the true financial system. This distortion stems from artificially altered prices of capital.
Because the passage of the “large lovely invoice” on July 3, bitcoin has rallied by roughly $15,000. In keeping with The Kobeissi Letter, bitcoin has entered “disaster mode,” with U.S. rates of interest remaining structurally excessive.
In the meantime, the dollar index (DXY) has fallen 11% over the previous six months. In that very same timeframe, tariffs have been delayed, U.S.-China commerce negotiations have oscillated, and tensions have escalated with U.S. military strikes involving Iran. Moreover, the world’s largest financial system recorded a historic $316 billion price range deficit in Might.
Taken collectively, these elements spotlight a monetary panorama formed by geopolitical uncertainty, fiscal pressure, and buyers gravitating towards perceived secure havens like bitcoin and gold.
Learn extra: As Bitcoin Rushes Past $122K, What’s Next for Ether, XRP, Dogecoin?