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Precious metals and Bitcoin are rising to new all-time highs this year alongside risk assets like stocks. In fact, gold surged past $4,000 for the first time ever, taking the market value of the yellow metal to a record $27 trillion. This comes as the US dollar is on track for its worst year since 1973, signaling a generational macroeconomic shift.
This year, central banks have showed up their gold holdings to nearly a quarter of their reserves at the cost of the dollar. Our next report decoding this for you. The illusion of the traditional prosperity measures is breaking. Wall Street stocks are up 40% with over a 20 trillion rally since April lows.
AI stocks have been the biggest winners. Gold is trading at new all-time highs, up nearly 50% this year for its best year since 1979. Silver has surged to a record high, up nearly 70% so far in 2025. Bitcoin hit a fresh peak of above $125,000 over the weekend with $130,000 bets rising. But this is not a reflection of solid global economic growth.
It is a flight from fiat currencies, especially the dollar under Trump's second term. The Federal Reserve is cutting rates into inflation, calling it a need of the hour policy. The uncertainty from Trump policies and the ongoing US government shutdown is weighing on the dollar. The US currency is down 10% this year and is on track for its worst year since 1973.
The dollar has lost 40% of its purchasing power since the 2000s. That is reflected in central banks shift away from the dollar to gold in their foreign exchange reserves. Worries over inflation, deteriorating US fiscal health, Federal Reserve independence, and geopolitical instability are raising questions about the stability of long-term treasuries, traditionally the world's safest asset.
In response, many central banks are turning back to that barbarous relic, gold. The fortunes of gold and government bonds have diverged sharply this year. That split was highlighted earlier last month. The price of bullion struck a new high and many longdated bond yields hit levels not seen in years or in some cases ever.
US treasuries have essentially been treading water in global reserve portfolios in recent years. At the same time, central banks' gold holdings have mushroomed thanks to accelerating demand and soaring prices. Gold has recently surpassed the euro to become the second largest global reserve asset after the US dollar.
For the first time since 1996, gold represents a bigger share of central banks reserves than treasuries. Bitcoin has joined gold in the ddollarization trend this year. The OG token sed to a new record high of above $125,000 over the weekend. Bitcoin is now the seventh largest asset with a market value of $2.5 trillion.
The crypto tokens alo is now driven by the macroeconomic factors including the US government shutdown last week. The government shutdown began on Wednesday that closed down operations at regulatory agencies and bureaucracies entirely or forced them to operate on a bare bones budget and minimal staff.
The political dysfunction stemming from the shutdown has renewed investor interest in Bitcoin. The OG token is now considered a store of value monetary technology as faith in traditional institutions falters. The move away from fiat is not just a trend anymore. It is the new reality. Business bureau we on world is one.
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