Gold and Bitcoin Surge in Unison: Is the US Dollar Facing a Crisis?
As of April 2025, both gold and Bitcoin are experiencing significant upward momentum, sparking debates about the stability of the US dollar. This rare synchronous rally between traditional safe-haven assets and decentralized cryptocurrencies suggests a potential shift in global investor sentiment. Market analysts are closely monitoring macroeconomic indicators, including inflation rates and central bank policies, to assess whether this trend reflects deeper concerns about fiat currencies. The correlation between these two historically divergent asset classes raises critical questions about the future of monetary systems and the role of alternative stores of value in an increasingly digital economy.
Gold hits $3,399 as the dollar tanks
Data shows that spot gold surged over 2% to hit an all-time high of $3,389/oz early Monday, with US gold futures touching $3,399. It is a rally fueled by global economic jitters and a dollar in freefall. The dollar index (DXY) hit a three-year low, making gold an even healthier hedge for investors holding other currencies.
Spot silver added 0.3% to $32.66 an ounce, platinum gained 0.3% to $969.68, while palladium fell 0.3% to $959.43. Markets are now deeply pricing in geopolitical risk, keeping an eye on Trump’s tariffs, economic slowdown, and central banks buying all combine into a perfect storm for bullion.
Absolutely incredible:
Gold with ANOTHER all time high and set to cross above $3,400/oz for the first time in history.
Gold is now officially up +100% since 2020 compared to a +86% gain in the S&P 500.
That’s right, gold is OUTPERFORMING the S&P 500 since the pandemic.
Truly… pic.twitter.com/u5KdQ9IBQ0
— The Kobeissi Letter (@KobeissiLetter) April 21, 2025
It is for the 55th time in 12 months that Gold has hit ATH, and now Bitcoin has also joined the race. The narrative in both Gold and Bitcoin is aligning for the first time in years. This suggests that a weaker US Dollar and more uncertainty might be on the way.
However, US President Trump’s “non-tariff cheating” list is one of the best things to happen to gold all year. With this push, GOLD is set to cross above $3,400/oz for the first time in history. It has outperformed the S&P 500 since the pandemic. Gold is up by 100% since 2020 compared to an 86% gain in the S&P 500.
Bitcoin bounces while Wall Street wobbles
With the downturn in the traditional trading market, the digital assets market surged by more than 3% over the last day. Its cumulative market cap stood at $2.76 trillion with a trading volume of $67 billion. CoinGlass data shows that over 90K traders, placing bets on futures, got liquidated in the last 24 hours. The total liquidation of both long and short bets stood at around $204 million. The largest single liquidation order of BTC/USD, valued at $2.75 million, happened on Bybit.
Bitcoin has managed to regain the upward momentum over the last week. Bitcoin price rose by 3% in the past 7 days. BTC is trading at an average price of $87,426, at press time. However, it is still down by almost 20% from its ATH of $109K.
US stock market futures officially open lower after the 3-day Easter weekend. As of now, no trade deals have been announced but Trump has stated that those who criticize tariffs are “bad at business.” On the other side, China warned others not to cut side deals with the US at its expense and still, 78 days are left in the “reciprocal tariff” pause.
Reports suggest that China’s central bank has already increased its gold holdings by 5 tonnes in March, posting its 5th consecutive monthly purchase. This brings China’s total gold reserves to a record 2,292 tonnes. Its gold holdings now reflect 6.5% of its total official reserve assets.
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