us dollar, bitcoin all time high, gold rally, silver, inflation, fed rate cut,. Photo by BeInCrypto
Markets are witnessing extraordinary rallies across both risk and safe-haven assets. The S&P 500, gold, silver, and Bitcoin (BTC) are all trending higher.
Experts argue that the economy appears to be doing well, but this prosperity is deceptive. It’s not driven by productivity or innovation but by a loss of confidence in fiat currencies, especially the US dollar.
The Everything Rally: What’s Really Behind The Market Euphoria?
In a detailed thread on X (formerly Twitter), The Kobeissi Letter, highlighted a notable financial moment — where everything is going up at once, from risky assets like stocks to traditional safe havens like gold and Bitcoin.
BeInCrypto reported yesterday that Bitcoin broke $125,000 amid its Uptober rally. The coin has appreciated 10.6% over the past week, marking a strong start to Q4. At the same time, silver and gold have also gained strongly. The former’s value has increased by more than 60% in 2025.
“Gold has hit 40 record highs in 2025 and is now worth a whopping $26.3 trillion. That's more than 10 times the value of Bitcoin. Gold, Silver, and Bitcoin are now all in the top 10 largest assets in the world,” the post read.
Historically, safe-haven assets tend to perform best when investors are seeking protection from falling stock markets or economic instability. However, this cycle is defying that pattern. Risk assets and safe havens are now rising together, suggesting a deeper shift in global investor behavior.
The S&P 500 has jumped over 39% in six months, adding trillions in market value. Meanwhile, the Nasdaq 100 has gained for six consecutive months — a rare streak seen only six times since 1986.
“And, the Magnificent 7 companies are investing a record $100B+ per quarter in CapEx to fuel the AI Revolution,” The Kobeissi Letter mentioned.
The post pointed out that the correlation between gold and the S&P 500 reached a record 0.91 in 2024.
“This means that Gold and the S&P 500 were moving in TANDEM 91% of the time,” the analysis revealed.
This raises a critical question: Are markets genuinely strong, or is something else behind the broader rally?
How a Falling US Dollar Is Creating a False Boom
Market analysts argue this does not reflect real economic expansion but rather a weakening trust in the US dollar. Notably, this year has been quite harsh for the greenback. According to The Kobeissi Letter, the US dollar is heading toward its worst annual performance since 1973.
For historical context, in 1973, the dollar experienced a sharp decline, one of the most dramatic in modern history, due to the collapse of the Bretton Woods system and the end of the gold standard.
[SRC] https://finance.yahoo.com/news/gold-bitcoin-stocks-booming-why-100648517.html
