Analysts Say Bitcoin’s New All-Time Highs Could Reflect Generational Macroeconomic Shift as Safe-Haven Assets Rally

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  • Safe-haven and risk assets rising together

  • Correlation between gold and equities hit a record, signaling a new monetary regime.

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  • BTC > $125,000 and gold ~ $3,880/oz as the US dollar posts one of its largest YTD declines.

  • Bitcoin price surges with gold as the US dollar falls; read the latest market drivers and implications for investors. Stay informed — analysis and takeaways.

    Safe-haven and bearer assets are surging alongside risk-on assets like stocks, an unusual combination that signals a macroeconomic shift.

    What is driving the Bitcoin price and gold price rally?

    Bitcoin price and gold price are rising in tandem with equities because markets are pricing in easier monetary policy, weaker labor markets and renewed inflation risk. These forces have weakened the US dollar, boosting dollar-denominated stores of value and sparking a widespread rotation into both safe-haven and risk assets.

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    Analysts at The Kobeissi Letter note that the USD is on track for its worst year since 1973, while the S&P 500 has climbed more than 40% over six months — a backdrop that supports assets like BTC and gold.

    Dollar, Bitcoin Price, Economics, Economy, United States
    Source: The Kobeissi Letter

    How does the US dollar decline affect Bitcoin and gold?

    A weaker US dollar increases the purchasing appeal of dollar-denominated commodities and digital stores of value. As the dollar loses purchasing power, investors shift capital into assets like gold and BTC to preserve wealth. The USD has lost roughly 40% of its purchasing power since 2000, according to long-term data cited by market analysts.

    Measured correlations show an unusual alignment: the correlation coefficient between gold and the S&P 500 reached a record 0.91 in 2024, indicating simultaneous flows into both risk and safe-haven assets.

    Why are macroeconomic events fueling this rally now?

    Recent macro events—including a US government shutdown, significant downward revisions to US jobs data, and expectations of Federal Reserve rate cuts—have shifted investor expectations.

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    Fabian Dori, chief investment officer at Sygnum, says the government shutdown and political dysfunction have renewed interest in BTC as a monetary technology and store of value as trust in institutions weakens. This view reinforces demand for bearer assets while risk appetite continues in equities.

    Dollar, Bitcoin Price, Economics, Economy, United States
    Bitcoin is hitting new all-time highs and is in a bull market. Source: TradingView

    Frequently Asked Questions

    Is the Bitcoin price rally sustainable?

    Short-term sustainability depends on macro policy: if the Fed cuts rates amid weakening labor data and rising inflation, the rally can persist. Long-term durability requires broad institutional adoption and macro stability; investors should monitor rate guidance and USD trends.

    How high is gold trading and why does it matter?

    Gold is trading near $3,880 per ounce at the time of this report. Its rise matters because it signals rising inflation expectations and capital flows seeking inflation protection, which often benefits Bitcoin as an alternative store of value.

    Key Takeaways

    • Macro drivers: Fed rate cuts, weaker jobs data and higher inflation expectations are the primary catalysts.
    • Asset correlation: Record gold–equity correlation suggests markets are pricing a new monetary regime.
    • Investor action: Monitor USD trends and policy signals; consider diversified allocations to stores of value and risk assets.

    Conclusion

    Bitcoin price and gold price rising together with equities reflect a rare market environment shaped by monetary policy expectations and a weakening US dollar. Investors should track Fed communications, USD performance, and real yields to gauge sustainability. COINOTAG will continue covering developments and providing data-driven analysis for market participants.

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    Source: https://en.coinotag.com/analysts-say-bitcoins-new-all-time-highs-could-reflect-generational-macroeconomic-shift-as-safe-haven-assets-rally/