Bitcoin Rallies Past $123,000, Eclipses Gold as Investors Seek Shelter Amid Global Uncertainty
Geopolitical tensions and economic volatility are sending investors flocking to safe havens like bitcoin and gold, driving both assets to the top of 2025’s performance charts.
This week, Bitcoin (BTC) surged beyond $123,000, marking its highest weekly close ever at $119,500 after notching new record highs in previous sessions. Year-to-date, bitcoin has climbed nearly 30%, edging out gold’s roughly 27% gain.
Charlie Bilello, Chief Market Strategist at Creative Planning, called it remarkable for both bitcoin and gold to be leading the market at once. “We’ve never seen these two occupy the top spots in the same calendar year,” he said.
However, the rush into “unproductive assets” raises concerns. Analysts note that such trends often reflect fear rather than optimism, as investors seek protection instead of putting capital into productive economic ventures.
“Ideally, productive investment should attract capital, but right now, distorted capital costs are pushing money toward safe havens instead,” Bilello explained.
Bitcoin has jumped about $15,000 since the passage of the so-called “big beautiful bill” on July 3, a move that analysts at The Kobeissi Letter interpret as the cryptocurrency entering “crisis mode” amid persistently high U.S. interest rates.
Meanwhile, the U.S. dollar index (DXY) has dropped 11% in six months, reflecting weakened confidence in the dollar as global tensions persist. Trade talks remain unresolved, U.S.-China relations are unstable, and fresh conflicts have erupted in the Middle East, including recent U.S. military activity involving Iran. Adding to the uncertainty, the U.S. reported a staggering $316 billion budget deficit in May.
These developments have created an environment where bitcoin and gold are increasingly viewed as safe harbors, raising important questions about future market stability and how capital will be allocated as economic and geopolitical pressures continue.
