At $123,000, Bitcoin Overtakes Gold to Lead All Assets in 2025

Bitcoin Tops $123,000, Surpassing Gold as Investors Seek Safe Havens Amid Global Tensions

Rising geopolitical risks and economic uncertainty are steering investors toward alternative stores of value like bitcoin and gold, fueling debate over market sentiment and the long-term health of global financial systems.

Bitcoin (BTC) has surged past $123,000, notching its highest-ever weekly close at $119,500, and extending its impressive run after hitting previous records the week before. So far in 2025, bitcoin has gained nearly 30%, edging out gold’s approximately 27% rise during the same timeframe.

According to Charlie Bilello, Chief Market Strategist at Creative Planning, it’s unprecedented for both bitcoin and gold to be the year’s top two performing assets. “We’ve never seen bitcoin and gold occupying the top spots in any calendar year,” he remarked.

However, this rally in so-called “unproductive assets” is raising concerns. When assets like bitcoin and gold outperform traditional investments, it can signal investor anxiety rather than confidence in economic growth.

“Productive capital allocation should be rewarded under normal conditions, but these trends may discourage investment in the real economy,” Bilello warned, citing artificially distorted costs of capital as a contributing factor.

Bitcoin has climbed roughly $15,000 since the passage of the high-profile “big beautiful bill” on July 3, a rally that analysts at The Kobeissi Letter interpret as bitcoin moving into “crisis mode” amid elevated U.S. interest rates.

Meanwhile, the U.S. dollar index (DXY) has fallen by 11% over the past six months, reflecting a weakening dollar as trade talks and geopolitical tensions remain volatile. Ongoing issues include stalled tariff negotiations, unstable U.S.-China relations, and escalating conflicts in the Middle East, including U.S. military action involving Iran. The situation is further complicated by the U.S. running a staggering $316 billion budget deficit in May, highlighting mounting fiscal pressures.

Together, these dynamics are shaping a financial environment where investors increasingly turn to bitcoin and gold as perceived safe havens—raising critical questions about future economic growth, market stability, and how capital will be allocated in the years ahead.