Story Highlights
- Bitcoin reaches $123,000, surpassing gold as the best-performing asset in 2025, with a year-to-date increase of 30%.
- Against the backdrop of increasing U.S. deficit and global tensions, investors are turning to Bitcoin and gold as safe havens.
- Analysts warn that this rise reflects market panic rather than confidence, as non-productive assets dominate.
Bitcoin officially topped the charts this year, breaking through $123,000 and setting a record high weekly closing price of $119,500. In 2025 to date, Bitcoin has risen 30%, outperforming gold, which has increased by about 27%.
This is a significant moment for cryptocurrency. But it also raises some serious questions.
Charlie Bilello, Chief Market Strategist at Creative Planning, noted that this is the first time Bitcoin and gold have been the top two assets in a year. "We've never seen them occupy the first and second positions simultaneously," he pointed out.
When Bitcoin and gold lead the market, it usually means something else is happening.
Risen by $15,000 since July 3rd: What Triggered This Change?
Bitcoin's latest rally began after the U.S. passed the "Great American Act" on July 3rd, with its price rising nearly $15,000 in just a few days.
But the true driving factors behind this trend are deeper. Investors are reacting to high U.S. interest rates, a weak dollar, delayed tariffs, and escalating geopolitical tensions.
In the past six months:
- The Dollar Index (DXY) has fallen 11%
- The U.S. deficit in May reached a record $316 billion
- Tensions with countries like Iran have triggered new military strikes
This is not a typical bull market. Some call it a "crisis mode". Kobesi reported this, and various signs seem to confirm this description.
What Impact Do Bitcoin and Gold's Rise Have on the Economy
Both Bitcoin and gold are considered non-productive assets—meaning they don't generate returns like stocks or real estate. When these assets perform well, it usually reflects fear rather than confidence.
Bilello noted that such a rebound typically doesn't occur during strong economic periods. Instead, it indicates that investors are withdrawing from traditional markets and moving funds to safer places.
Bitcoin or Gold? Where Are Investors Turning Now
Bitcoin is often compared to gold, with compelling arguments for both. Now, Bitcoin seems to be performing better, becoming the preferred choice during uncertain times.
But the key is: both are rising due to people's concerns. This is the signal behind the surge. Currently, this landscape suggests that investors are preparing for more challenging situations in the future.
