As the Dollar Weakens, Bitcoin Rallies — But Other Markets Reveal Hurdles to Come

Bitcoin Tops $118K, But Struggles to Outpace Other Major Assets

11/7/2025

Bitcoin has soared past the $118,000 mark, setting new all-time highs in dollar terms and pushing into price discovery above $117,000. Yet despite this impressive rally, the world’s largest cryptocurrency still lags behind previous records when measured against other key assets.

The recent surge has been fueled largely by a weakening U.S. dollar rather than a broader crypto-specific catalyst. The U.S. Dollar Index (DXY), which tracks the greenback’s performance against a basket of major currencies, has dropped from around 110 earlier this year to below 98. Historically, readings below 100 suggest dollar weakness—a factor that tends to boost demand for risk assets like bitcoin.

However, true strength for bitcoin means outperforming other assets as well—not just the dollar. And right now, that broader outperformance isn’t materializing.

Currently, one bitcoin is valued at just over 35 ounces of gold, falling short of the record ratio of about 40 ounces seen in December 2024. When measured in British pounds, bitcoin sits around 87,000 pounds (approximately $117,800), still under its all-time high of 90,000 pounds. Relative to major stock indexes like the S&P 500 and Nasdaq 100, bitcoin’s ratios also remain below previous peaks.

These cross-asset measures represent significant resistance levels for bitcoin. A decisive break above them would signal true price discovery across global markets, indicating independent momentum for BTC beyond dollar weakness.

Until then, evaluating bitcoin’s performance solely in dollar terms gives an incomplete picture. Comparing BTC’s value against other major assets remains key to understanding whether this rally reflects genuine market strength—or is simply riding the wave of a declining dollar.