Bitcoin Reaches New All-time High Above $125,000
Bitcoin, gold, and global stock markets are all hitting new highs while the US dollar is on track for its worst yearly performance since 1973, signaling what analysts call a “generational shift” in the world economy.
According to analysts at The Kobeissi Letter, Bitcoin has reached a new record above $125,000, gold is trading near $4,000 per ounce, and the S&P 500 has gained over 40% in just six months. The report highlights that the correlation between gold and the S&P 500 reached a record 0.91 in 2024 — a rare occurrence showing that both safe-haven and risk assets are rising together.
“There is a widespread rush into assets happening right now,” The Kobeissi Letter wrote. “As inflation rebounds and the labor market weakens, the Federal Reserve is cutting rates. The USD is now on track for its worst year since 1973, down over 10% year-to-date. The USD has lost 40% of its purchasing power since 2000.”
Macroeconomic events drive Bitcoin to new highs
The rise in Bitcoin is being supported by broader economic trends, including falling interest rates, a weaker labor market, and the ongoing US government shutdown. Analysts say these events have reduced confidence in traditional systems and boosted interest in Bitcoin as an alternative store of value.
Fabian Dori, Chief Investment Officer at Sygnum Bank, said that the recent shutdown in Washington “renewed investor interest in BTC as a store-of-value monetary technology” as confidence in traditional institutions continues to decline.
Sources:
https://www.tradingview.com/chart/g7xkPkTa/?symbol=BITSTAMP%3ABTCUSD
https://cointelegraph.com/news/bitcoin-all-time-high-dollar-worst-year-1973