Gold, Bitcoin, and Stocks Are All Booming — Here’s Why That’s Not a Good Sign
Markets are witnessing extraordinary rallies throughout each danger and safe-haven belongings. The S&P 500, gold, silver, and Bitcoin (BTC) are all trending greater.
Experts argue that the economic system seems to be doing properly, however this prosperity is misleading. It’s not pushed by productiveness or innovation however by a lack of confidence in fiat currencies, particularly the US greenback.
The Everything Rally: What’s Really Behind The Market Euphoria?
In a detailed thread on X (previously Twitter), The Kobeissi Letter, highlighted a notable monetary second — the place every thing goes up directly, from dangerous belongings like shares to conventional protected 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 previous week, marking a sturdy begin to This autumn. At the identical time, silver and gold have also gained strongly. The former’s worth has elevated by greater than 60% in 2025.
“Gold has hit 40 file highs in 2025 and is now value a whopping $26.3 trillion. That’s greater than 10 occasions the worth of Bitcoin. Gold, Silver, and Bitcoin are actually all within the prime 10 largest belongings on this planet,” the post learn.
Historically, safe-haven belongings are likely to carry out greatest when traders are looking for safety from falling stock markets or economic instability. However, this cycle is defying that sample. Risk belongings and protected havens are actually rising collectively, suggesting a deeper shift in world investor conduct.
The S&P 500 has jumped over 39% in six months, including trillions in market worth. Meanwhile, the Nasdaq 100 has gained for six consecutive months — a uncommon streak seen solely six occasions since 1986.
“And, the Magnificent 7 corporations are investing a file $100B+ per quarter in CapEx to gas the AI Revolution,” The Kobeissi Letter talked about.
The put up identified that the correlation between gold and the S&P 500 reached a file 0.91 in 2024.
“This signifies that Gold and the S&P 500 have been shifting in TANDEM 91% of the time,” the evaluation revealed.
This raises a essential query: Are markets genuinely strong, or is one thing else behind the broader rally?
How a Falling US Dollar Is Creating a False Boom
Market analysts argue this doesn’t replicate actual financial enlargement however relatively a weakening belief within the US greenback. Notably, this 12 months has been fairly harsh for the greenback. According to The Kobeissi Letter, the US greenback is heading towards its worst annual efficiency since 1973.
For historic context, in 1973, the greenback skilled a sharp decline, one of the crucial dramatic in fashionable historical past, because of the collapse of the Bretton Woods system and the top of the gold standard.
So far, this 12 months, the greenback has dipped 10%. Moreover, since 2020, the greenback has additionally misplaced roughly 40% of its buying energy.
Furthermore, issues might flip for the more severe for the forex. According to the CME FedWatch Tool, markets are pricing in a 95.7% likelihood that the Fed will cut rates once more at its October assembly, following a current discount in September. Such easing might speed up the greenback’s downtrend.
“The Fed is slicing charges into 4.0% annualized inflation since 2020. And, the Fed is slicing charges into 2.9%+ Core PCE inflation for the primary time because the Nineteen Nineties. What’s actually occurring right here is belongings are pricing in a new period of financial coverage. When protected haven belongings, dangerous belongings, actual property, and inflation are all rising collectively, it’s a macro-based shift. The Fed has zero management of long-term yields,” The Kobeissi Letter famous.
Market commentator Shanaka Anslem Perera described the phenomenon as an ‘phantasm of prosperity,’ with rising asset costs pushed by traders shifting away from fiat currencies.
“The Fed is slicing charges into inflation, printing credibility whereas calling it coverage. When gold, Bitcoin, equities, and actual property all rise collectively, it’s not a bull market … it’s financial panic in sluggish movement,” Perera explained.
He pressured that the simultaneous surge throughout asset courses means that wealth will not be being created, however the greenback’s buying energy is collapsing. In this view, the denominator — the forex itself — is dying.
“This will not be a increase. It’s the endgame of a system priced in paper and powered by phantasm,” Perera remarked.
Thus, as markets surge and the greenback weakens, the rally displays greater than optimism. Rather than signaling financial energy, it underlines a shift in what traders belief. Markets aren’t celebrating development — they’re bracing for change.
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