Bitcoin Hits Record High Above $123K, Outpaces Gold in 2025 Performance

Bitcoin (BTC) has soared past $123,000, setting a new all-time high and marking its strongest weekly close at $119,500—its second consecutive record weekly close. So far in 2025, BTC is up approximately 30%, outpacing gold’s 27% gain and emerging as the top-performing asset of the year.

Charlie Bilello, chief market strategist at Creative Planning, highlights that this is the first time bitcoin and gold have simultaneously taken the top two spots in annual asset performance. While the rally underscores growing investor interest, Bilello warns that when unproductive assets like bitcoin and gold lead the market, it often reflects deep-seated economic anxiety rather than confidence.

Bitcoin’s latest surge follows the passage of the “Big Beautiful Bill” on July 3, which sparked a $15,000 gain. The Kobeissi Letter describes this momentum as “crisis mode,” driven by persistently high U.S. interest rates. Concurrently, the U.S. dollar index (DXY) has dropped 11% over the past six months, signaling weakening sentiment toward the greenback.

Several macroeconomic and geopolitical factors are contributing to the flight to safe-haven assets. These include delayed tariffs, unstable U.S.-China trade negotiations, and heightened tensions following U.S. military actions involving Iran. Meanwhile, the U.S. reported a staggering $316 billion budget deficit in May, amplifying concerns over fiscal sustainability.

As traditional markets navigate volatility and uncertainty, investors appear to be reallocating capital into assets like bitcoin and gold, which are viewed as hedges against inflation, geopolitical risk, and currency debasement. This shift could signal a broader reevaluation of risk and capital allocation in the global financial landscape.