Bitcoin (BTC) has surged above $123,000, marking a new all-time high and overtaking gold as the best-performing asset of 2025. With year-to-date gains of approximately 30%, Bitcoin has edged past gold’s 27% return, signaling a major shift in capital flows amid global instability.
“We’ve never seen Bitcoin and gold in the top two spots for any calendar year,” noted Charlie Bilello, Chief Market Strategist at Creative Planning.
Weekly Close Sets New Record at $119,500
Bitcoin’s latest rally is not just a spike — it comes with technical confirmation. BTC logged its highest-ever weekly close at $119,500, surpassing the previous record set just a week earlier. The move higher reflects sustained investor demand rather than a short-term squeeze.
What’s Driving Bitcoin’s Ascent?
Multiple macro and geopolitical factors have contributed to Bitcoin’s bullish momentum:
- U.S. interest rates remain structurally high, keeping risk capital constrained
- The U.S. dollar index (DXY) has dropped 11% over six months, weakening investor confidence in fiat assets
- Tariffs have been delayed while U.S.-China trade tensions continue to rise
- U.S. military action in the Middle East, particularly involving Iran, has heightened global instability
- A record $316 billion U.S. budget deficit in May has added fiscal pressure
Since the passage of the “big beautiful bill” on July 3, Bitcoin has gained nearly $15,000, reflecting investor concern over unchecked government spending.
Capital Shift Toward “Unproductive” Assets Raises Concern
Bitcoin and gold are often considered non-productive safe haven assets — meaning they don’t generate yield or contribute directly to economic output. The fact that these assets lead the market could be a signal of investor anxiety, not optimism.
“When unproductive assets lead the pack, it often reflects distorted capital markets and broad economic uncertainty,” Bilello explained.
This trend could discourage productive investment in the real economy, leading to long-term misallocation of capital and stagnation in sectors like infrastructure, technology, and manufacturing.
Is Bitcoin in “Crisis Mode”?
According to market analysts at The Kobeissi Letter, Bitcoin is now in what they describe as “crisis mode”, reflecting global unease rather than speculative euphoria.
The flight to Bitcoin and gold is not just about returns — it’s about preserving value in a world where traditional economic signals are failing.
Final Takeaway
With Bitcoin at $123,000 and climbing, and gold close behind, 2025 is shaping up to be a year defined by capital preservation, not risk-taking. While Bitcoin’s price may be hitting records, its rise also serves as a barometer of economic and geopolitical tension. For investors, the message is clear: the era of passive monetary trust is being tested, and Bitcoin is at the center of that shift.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.