In 2025, Bitcoin reached a record value, climbing past $123,000. This surge has prompted experts to reassess the situation in financial markets, particularly in relation to gold.
How Bitcoin Achieved Records
Bitcoin this year surpassed gold and reached its highest weekly closing price at $119,500. As Charlie Bilello, Chief Market Strategist at Creative Planning, noted: 'We've never seen these two assets in the number one and number two spots.'
Drivers Behind Bitcoin and Gold's Rise
The latest rally of Bitcoin began after the passage of the 'big beautiful bill' in the U.S. on July 3, adding nearly $15,000 to its price. Analysis shows that investors are reacting to high U.S. interest rates, a weakening dollar, delayed tariffs, and rising geopolitical tensions. Over the past six months, the dollar index (DXY) fell by 11%, while the U.S. deficit hit a record $316 billion.
What the Rise of Bitcoin and Gold Means for the Economy
Both Bitcoin and gold are considered unproductive assets, as they do not generate income like stocks or real estate. Bilello emphasizes that such a rally usually occurs in unstable economic conditions, indicating that investors are pulling out of traditional markets into safer assets.
The rise of Bitcoin and gold in 2025 might signal instability in the global economy, prompting experts to draw attention to these shifts in financial markets.
