Bitcoin Tops $118K, But Broader Market Signals Tell a Cautious Story
11/7/2025
Bitcoin has surged past $118,000, breaking into new record territory in dollar terms. Yet beneath the headlines, the world’s largest cryptocurrency is still lagging its previous highs when measured against other major financial assets.
The recent rally appears driven primarily by a weakening U.S. dollar rather than strong, crypto-specific catalysts. The U.S. Dollar Index (DXY), which tracks the dollar’s performance against a basket of other leading currencies, has slid from around 110 at the start of the year to below 98. Traditionally, readings under 100 suggest dollar weakness—a trend that tends to buoy risk assets like bitcoin.
However, bitcoin’s true strength isn’t just about its price in dollars. For genuine momentum, it needs to outperform other key assets—and that’s not yet happening.
At present, one bitcoin is equivalent to just over 35 ounces of gold, below its record ratio of roughly 40 ounces reached in December 2024. In terms of British pounds, bitcoin trades around 87,000 pounds (approximately $117,800), still shy of its all-time high of 90,000 pounds. Similarly, bitcoin’s ratios relative to major stock indices like the S&P 500 and Nasdaq 100 remain below their historical peaks.
These levels represent significant resistance zones for bitcoin. Only a decisive move beyond them would signal true price discovery across broader markets and confirm that bitcoin’s rally stems from intrinsic strength rather than simply benefiting from a weaker dollar.
Until then, looking at bitcoin solely through the lens of dollar prices provides only part of the story. Its performance relative to other major assets remains essential for gauging whether this latest surge reflects real market power—or is merely a side effect of the dollar’s decline.
