Bitcoin Surges Past $123,000, Overtakes Gold Amid Global Uncertainty

Geopolitical tensions and economic instability are steering investors toward so-called “unproductive” assets like bitcoin and gold, sparking debate about capital flows and the health of financial markets.

Bitcoin (BTC) recently hit fresh all-time highs above $123,000, logging its highest weekly close ever at $119,500, following a previous record the week before. Year-to-date, bitcoin has climbed about 30%, outpacing gold’s roughly 27% gain over the same period.

Charlie Bilello, Chief Market Strategist at Creative Planning, notes that bitcoin and gold are currently the top two performing assets of 2025, something he says is unprecedented. “We’ve never seen these two occupy the number one and two spots in any calendar year,” Bilello observed.

Yet, the rise of bitcoin and gold as market leaders also raises red flags. When traditionally unproductive assets outperform, it can be a sign of investor fear or broader economic stress rather than optimism about future growth.

“In theory, productive capital allocation should be rewarded, but these trends risk discouraging investment in the real economy,” Bilello added, pointing to the distortion caused by artificially influenced costs of capital.

Bitcoin has surged roughly $15,000 since the passage of the so-called “big beautiful bill” on July 3, a rally that, according to The Kobeissi Letter, signals bitcoin entering “crisis mode” amid persistently high U.S. interest rates.

Meanwhile, the U.S. dollar index (DXY) has dropped 11% over the past six months. Over the same period, tariff negotiations have stalled, U.S.-China trade talks have fluctuated, and geopolitical tensions have intensified, including U.S. military actions involving Iran. Adding to the strain, the U.S. recorded a staggering $316 billion budget deficit in May, underscoring fiscal pressures.

Altogether, these dynamics illustrate a financial environment shaped by geopolitical turmoil and economic uncertainty, driving investors to perceived safe havens like bitcoin and gold—and raising critical questions about the long-term implications for productive investment and market stability.