Bitcoin Surges Past $123,000, Surpasses Gold as Investors Seek Safety Amid Global Turmoil
Escalating geopolitical tensions and economic uncertainty are driving investors toward safe-haven assets like bitcoin and gold, prompting discussions about what this signals for financial markets and the broader economy.
Bitcoin (BTC) recently rocketed past $123,000, securing its highest weekly close ever at $119,500 after a series of record-breaking sessions. So far in 2025, BTC has climbed roughly 30%, outpacing gold’s approximately 27% gain over the same period.
Charlie Bilello, Chief Market Strategist at Creative Planning, noted how unusual it is for these two “unproductive assets” to lead markets simultaneously. “We’ve never seen bitcoin and gold as the top-performing assets in any calendar year,” he explained.
But the surge in bitcoin and gold isn’t purely a sign of optimism. Analysts warn that when non-yielding assets outperform, it often reflects deep investor anxiety rather than confidence in economic expansion.
“Under normal circumstances, productive investment should be rewarded,” said Bilello. “But right now, there’s a risk that capital will avoid the real economy because of distorted costs of capital.”
Bitcoin’s latest rally, which saw prices jump around $15,000 since the passage of the so-called “big beautiful bill” on July 3, is seen by analysts at The Kobeissi Letter as evidence the market has entered “crisis mode” amid persistently high U.S. interest rates.
At the same time, the U.S. dollar index (DXY) has fallen 11% in the past six months, while global tensions remain high. Tariff talks have stalled, U.S.-China relations are fluctuating, and new conflicts have emerged in the Middle East, including U.S. military actions involving Iran. The fiscal outlook is also under pressure, with the U.S. reporting a staggering $316 billion budget deficit in May.
These combined factors have created an environment where investors are increasingly seeking refuge in assets like bitcoin and gold—underscoring both the allure of digital and traditional stores of value, and the deep uncertainty hanging over global markets.
