A recent report from The Kobeissi Letter reveals that multiple asset classes, from Bitcoin to gold and stocks, are experiencing a simultaneous rally. This unusual phenomenon is not a response to an economic boom, but rather to the growing weakening of the US dollar, which is rapidly losing investor confidence. The situation has been described as a slow-motion currency panic.
The hard data reflects an alarming reality for the US currency. The dollar has not only lost 40% of its purchasing power since 2020 but is also heading for its worst annual performance since 1973. Meanwhile, other assets are celebrating records. Gold has hit 40 all-time highs during 2025, and silver has seen an impressive increase of over 60% in its value.
This behavior defies traditional market logic, where risk-on and safe-haven assets typically move in opposite directions. The correlation between gold and the S&P 500, for instance, reached a record 0.91, indicating they moved almost in perfect unison. This scenario suggests that investors are not rotating capital but are instead fleeing the dollar’s devaluation.
Implications of a Weak Dollar
The significance of this event is monumental for the global economy. According to market commentator Shanaka Anslem Perera, we are not in a bull market but are facing an “illusion of prosperity.” The widespread price increase does not signify real wealth creation but rather reflects the collapse of purchasing power of the dollar. For investors, this implies an urgent reassessment of their strategies.
The impact on the crypto market is equally noteworthy. Bitcoin has surpassed the $125,000 mark, solidifying its position as a preferred asset for capital protection. The current weakening of the US dollar acts as a catalyst, forcing market participants to seek stores of value beyond traditional financial instruments, which in turn benefits decentralized assets.
The current situation is a clear indicator that investors are bracing for a fundamental shift in the financial system. Instead of celebrating growth, the market is sending a warning signal about the dollar’s stability. Future prospects point to a continued search for alternative assets as long as the weakening of the US dollar persists.
