Crypto News 2025: Stocks, Gold, Bitcoin Shatter Records—The Shocking Reason Behind the Rally

• Why Are All Markets Rising at Once in 2025?
• The "Debasement Trade" Explained
• Is This the "Sound Money Renaissance"?
• What’s Next for Markets?
• FAQs

In an unprecedented market phenomenon, gold, Bitcoin, and major stock indices are simultaneously hitting all-time highs as the US dollar collapses. Analysts attribute this rally to a "debasement trade," where investors flee fiat currencies for scarce assets like bitcoin and gold. With the dollar weakening by 10% in 2025—its worst year in decades—this article breaks down the structural shift driving the global bull run and why "sound money" assets are dominating.

Why Are All Markets Rising at Once in 2025?

For the first time in history, gold surpassed $4,000 per ounce, Bitcoin breached $126,000, and major stock indices like the S&P 500 reached record highs—all in the same week. This rare synchronization defies traditional market correlations, where "risk-on" (stocks, crypto) and "risk-off" (gold, bonds) assets typically move inversely. According to analysts at The Kobeissi Letter, the common denominator is the US dollar’s dramatic decline. The dollar index (DXY) has dropped 10% year-to-date, marking its weakest performance since the 1980s. As the dollar loses value, nominal asset prices rise, creating a dual effect that fuels rallies across all markets. "When everything hits records, ask: What’s changed? The answer is the denominator—the dollar," noted Kobeissi in an October 7 tweet. Data from TradingView confirms the dollar’s slide coincides with spikes in gold and Bitcoin.

The "Debasement Trade" Explained

JP Morgan coined the term "debasement trade" to describe the flight from fiat currencies to inflation-resistant assets. Mohamed El-Erian highlighted the trend, citing geopolitical uncertainty, soaring US debt (now at $36 trillion), and fading confidence in the Federal Reserve’s independence. "This isn’t speculation—it’s a structural shift from 'inside money' (government-controlled currencies) to 'outside money' (Bitcoin, gold)," said crypto analyst Brian Cubellis. The BTCC research team notes that Bitcoin’s fixed supply of 21 million makes it uniquely appealing during currency devaluations, while gold’s scarcity (annual production grows just 1.7%) reinforces its role as a store of value. Historical data from CoinMarketCap shows Bitcoin’s price surged 200% year-to-date, outpacing gold’s 25% gain.

Is This the "Sound Money Renaissance"?

With central banks cutting rates (the Fed dropped rates to 4.25% in September) and inflation lingering at 3.8%, investors are prioritizing assets that can’t be printed. "It’s a golden age for real assets," remarked a BTCC strategist. Gold’s rally echoes the 1970s stagflation era, while Bitcoin’s rise mirrors its 2020–2021 bull run—but with one key difference: institutional adoption. Morgan Stanley and JP Morgan now recommend Bitcoin as a hedge, with the latter calling it "digital gold." Meanwhile, retail investors are piling into crypto exchanges like BTCC, where Bitcoin trading volumes hit $50 billion in Q3 2025. As Cubellis quipped, "Would you rather hold dollars losing 10% yearly or Bitcoin with a 200% ROI?"

What’s Next for Markets?

The dollar’s fate hinges on the Fed’s next moves. If rate cuts continue, expect more capital to Flow into hard assets. However, some warn of a bubble—Bitcoin’s 14-day RSI hit 82 in October, signaling overbought conditions. Yet, with the US deficit projected to hit $2 trillion in 2025, the debasement trade may have legs. "This isn’t a temporary trend; it’s a reevaluation of money itself," said El-Erian. For now, the party rolls on: Gold ETFs saw $8 billion inflows last month, while Bitcoin spot ETFs now hold 800,000 BTC.

FAQs

Why are stocks, gold, and Bitcoin all rising together?

They’re all priced in dollars—so as the dollar weakens, their nominal values rise. This "debasement trade" reflects lost confidence in fiat currencies.

Is Bitcoin replacing gold?

Not yet, but it’s complementing it. Bitcoin’s volatility remains higher, but its scarcity and portability make it attractive to younger investors.

How long will this rally last?

It depends on the dollar. If the Fed reverses course or inflation cools, the trend could pause. But with deficits soaring, the structural case for hard assets remains strong.