Gold, bitcoin and stocks are all booming – this is why it is not a good sign

The markets attend extraordinary rallies both on risk and security assets. The S&P 500, Gold, Silver and Bitcoin (BTC) are all higher.

Experts argue that the economy seems to be going well, but this prosperity is misleading. It is not motivated by productivity or innovation but by a loss of confidence in fiduciary currencies, in particular the US dollar.

In a detailed thread on X (formerly Twitter), Kobeissi’s letter stressed a notable financial moment – where everything rises at the same time, risky assets such as actions with traditional shelters such as gold and bitcoin.

Beincryptto reported yesterday that Bitcoin broke $ 125,000 in the middle of his rally Up October. The room appreciated 10.6% in last week, marking a solid start to the fourth quarter. At the same time, silver and gold have also won. The value of the first increased by more than 60% in 2025.

“Gold has reached 40 records in 2025 and is now worth 26.3 billions of dollars. This is more than 10 times the value of Bitcoin. Gold, Silver and Bitcoin are now all in the top 10 active in the world,” said post.

Historically, safe security assets tend to work best when investors seek protection against the drop in stock markets or economic instability. However, this cycle defies this model. Risk assets and safety shelters are now increasing together, suggesting a deeper change in the behavior of global investors.

The S&P 500 jumped 39% in six months, adding thousands of market value. Meanwhile, the Nasdaq 100 won for six consecutive months – a rare sequence has only seen six times since 1986.

“And, the magnificent 7 companies invest a record of $ 100 billion and per quarter in Capex to fuel the AI ​​revolution,” said Kobeissi’s letter.

The position stressed that the correlation between gold and S&P 500 reached a record of 0.91 in 2024.

“This means that gold and S&P 500 moved to tandem 91% of the time,” revealed the analysis.

This raises a critical question: are the markets really strong, or is anything else behind the wider rally?

Market analysts argue that this does not reflect real economic expansion but rather a weakening of confidence in the US dollar. This year was notably severe enough for the greenback. According to Kobeissi’s letter, the US dollar is heading for its worst annual performance since 1973.

For the historical context, in 1973, the dollar experienced a sharp decline, one of the most dramatic in modern history, due to the collapse of the Bretton Woods system and the end of the Order stallion.

So far, this year, the dollar has dropped by 10%. In addition, since 2020, the dollar has also lost around 40% of its purchasing power.

In addition, things could go worse for money. According to the CME Fedwatch tool, the markets estimate a probability of 95.7% that the Fed will again reduce rates at its meeting in October, following a recent reduction in September. Such relaxation could speed up the downward trend of the dollar.

“The Fed reduces rates in annualized inflation of 4.0% since 2020. And, the Fed reduces the rates of 2.9% + the inflation of the central PCE for the first time since the 1990s. What is really happening here are assets, real estate and images and inflation are all going up together. Kobeissi letter noted.

The commentator of the Shanaka markets Shanaka Anslem Perera described the phenomenon as an “illusion of prosperity”, with the increase in the prices of assets drawn by investors moving away from fiduciary currencies.

“The Fed reduces inflation rates, printing credibility while calling its policy. When gold, bitcoin, actions and real estate all increases together, it is not a bull market … It is a monetary panic at idle,” said Perera.

He stressed that the simultaneous push between the asset classes suggests that wealth is not created, but the dollar purchasing power collapses. From this point of view, the denominator – the currency himself – is dying.

“It is not a boom. It is the end of the game of a system at the price of paper and powered by the illusion,” said Perera.

Thus, as the markets go up and the dollar weakens, the rally reflects more than optimism. Rather than reporting economic strength, he highlights a change in what investors trust. The markets do not celebrate growth – they are preparing for change.

Read the original story, gold, bitcoin and stocks are all booming – this is why this is not a good sign of Kamina Bashir on Beincrypto.com