Markets are witnessing extraordinary rallies across both risk and safe-haven assets. The S&P 500, gold, silver, and Bitcoin (BTC) are all trending higher.
Experts argue that the economy appears to be doing well, but this prosperity is deceptive. It’s not driven by productivity or innovation but by a loss of confidence in fiat currencies, especially the US dollar.
SponsoredThe Everything Rally: What’s Really Behind The Market Euphoria?
In a detailed thread on X (formerly Twitter), The Kobeissi Letter, highlighted a notable financial moment — where everything is going up at once, from risky assets like stocks to traditional safe havens like gold and Bitcoin.
BeInCrypto reported yesterday that Bitcoin broke $125,000 amid its Uptober rally. The coin has appreciated 10.6% over the past week, marking a strong start to Q4. At the same time, silver and gold have also gained strongly. The former’s value has increased by more than 60% in 2025.
“Gold has hit 40 record highs in 2025 and is now worth a whopping $26.3 trillion. That’s more than 10 times the value of Bitcoin. Gold, Silver, and Bitcoin are now all in the top 10 largest assets in the world,” the post read.
Historically, safe-haven assets tend to perform best when investors are seeking protection from falling stock markets or economic instability. However, this cycle is defying that pattern. Risk assets and safe havens are now rising together, suggesting a deeper shift in global investor behavior.
The S&P 500 has jumped over 39% in six months, adding trillions in market value. Meanwhile, the Nasdaq 100 has gained for six consecutive months — a rare streak seen only six times since 1986.
Sponsored“And, the Magnificent 7 companies are investing a record $100B+ per quarter in CapEx to fuel the AI Revolution,” The Kobeissi Letter mentioned.
The post pointed out that the correlation between gold and the S&P 500 reached a record 0.91 in 2024.
“This means that Gold and the S&P 500 were moving in TANDEM 91% of the time,” the analysis revealed.
This raises a critical question: Are markets genuinely strong, or is something else behind the broader rally?
SponsoredHow a Falling US Dollar Is Creating a False Boom
Market analysts argue this does not reflect real economic expansion but rather a weakening trust in the US dollar. Notably, this year has been quite harsh for the greenback. According to The Kobeissi Letter, the US dollar is heading toward its worst annual performance since 1973.
For 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 gold standard.
So far, this year, the dollar has dipped 10%. Moreover, since 2020, the dollar has also lost roughly 40% of its purchasing power.
Furthermore, things could turn for the worse for the currency. According to the CME FedWatch Tool, markets are pricing in a 95.7% probability that the Fed will cut rates again at its October meeting, following a recent reduction in September. Such easing could accelerate the dollar’s downtrend.
Sponsored“The Fed is cutting rates into 4.0% annualized inflation since 2020. And, the Fed is cutting rates into 2.9%+ Core PCE inflation for the first time since the 1990s. What’s really happening here is assets are pricing in a new era of monetary policy. When safe haven assets, risky assets, real estate, and inflation are all rising together, it’s a macro-based shift. The Fed has zero control of long-term yields,” The Kobeissi Letter noted.
Market commentator Shanaka Anslem Perera described the phenomenon as an ‘illusion of prosperity,’ with rising asset prices driven by investors moving away from fiat currencies.
“The Fed is cutting rates into inflation, printing credibility while calling it policy. When gold, Bitcoin, equities, and real estate all rise together, it’s not a bull market … it’s monetary panic in slow motion,” Perera explained.
He stressed that the simultaneous surge across asset classes suggests that wealth is not being created, but the dollar’s purchasing power is collapsing. In this view, the denominator — the currency itself — is dying.
“This is not a boom. It’s the endgame of a system priced in paper and powered by illusion,” Perera remarked.
Thus, as markets surge and the dollar weakens, the rally reflects more than optimism. Rather than signaling economic strength, it underlines a shift in what investors trust. Markets aren’t celebrating growth — they’re bracing for change.
