The Dollar Heads for Its Worst Year Since 1973 – As Bitcoin, Gold, and Stocks Soar

The U.S. dollar is experiencing its worst year since 1973, having lost more than 10% of its value since the start of 2025. Meanwhile, nearly every other major asset class — from cryptocurrencies to precious metals and equities — is undergoing explosive growth unseen in decades.

The Dollar Falls, While Cryptocurrencies and Metals Surge Bitcoin recently surpassed $125,000, pushing its market capitalization to $2.5 trillion.

Gold is trading near $4,000 per ounce, having hit 40 record highs in 2025, with a total market value of $26.3 trillion — more than ten times Bitcoin’s value.

Silver has gained more than 60%, now worth $2.7 trillion. For the first time, gold, silver, and bitcoin have all entered the list of the ten most valuable assets in the world.

Stock Indexes Are Soaring At the same time, equity markets are booming.

The S&P 500 has surged 40% in just six months, adding a staggering $16 trillion in market capitalization.

The Nasdaq 100 has posted gains for six consecutive months, a streak seen only six times since 1986. The so-called Magnificent 7 (Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia, and Tesla) are investing more than $100 billion per quarter into artificial intelligence development, fueling the next stage of the AI revolution.

Safe Havens No Longer Behave as Safe Havens According to Bloomberg, the correlation between gold and the S&P 500 has reached a record 0.91, meaning both markets now move in the same direction 91% of the time.

This marks a structural shift: traditional safe havens now rise alongside risk assets. Investors, unsettled by renewed inflation and a weakening labor market, are pouring into anything with a price chart — from real estate and commodities to cryptocurrencies.

Meanwhile, the Federal Reserve is cutting rates despite 4% annualized inflation, a level not seen since the 1990s. The core PCE inflation rate has risen to 2.9%, showing the dollar’s persistent erosion of purchasing power — down 40% since 2000.

The Fed Loses Control as Investors Adapt to a New Era Inflation expectations for the next decade are climbing as the Fed’s influence over long-term yields weakens.

Markets are adapting — instead of hedging against volatility, investors are repositioning for a world defined by a weaker dollar. The rapid rise of artificial intelligence has triggered the largest wave of tech spending since the dot-com boom, transforming the investment landscape.

Lower Interest Rates Ignite a Global Investment Frenzy As soon as the Fed hinted at a pivot toward lower rates, capital began flooding into all asset classes.

While the dollar weakens, owners of stocks, cryptocurrencies, and commodities are reaping record profits, while the lower half of U.S. households is being left behind — the bottom 50% now holds just 2.5% of total national wealth. Since the launch of ChatGPT in 2022, job openings have fallen, but markets have soared, showing that investors are focused on long-term structural change rather than short-term data. For the first time in decades, safe havens, risk assets, and inflation-linked trades are all rising together — a rare synchronization that reflects a complete financial realignment.

A New Financial Era Is Unfolding Asset prices are being rewritten in real time, and the scale of the rally shows no signs of slowing down.

Markets have entered a new phase — one where artificial intelligence, cryptocurrencies, and a declining dollar collectively define the next chapter of global finance.

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