Gold prices have surged to a new all-time high of $4,035 per ounce, marking a 30% jump since April and raising questions about whether Bitcoin (BTC) could be the next major asset to set a record.
The spike comes amid renewed economic and political turbulence in the United States, including the ongoing government shutdown and lingering uncertainty over tariffs introduced earlier this year.
Gold’s Safe-Haven Rally Gains Momentum
According to analysts, gold’s rally has been fueled by a mix of market anxiety, a weaker dollar, and record inflows into gold-backed ETFs.
Data from the World Gold Council shows that gold ETFs attracted nearly $64 billion in 2025 alone — the highest level ever recorded.
Christopher Wong, a rates strategist at OCBC Bank, explained,
“The shutdown is a tailwind for gold prices. Investors turn to safe havens during gridlock, and gold has delivered each time.”
Private investment in physical gold is also booming. Silver Bullion’s founder, Gregor Gregersen, said their customer base has more than doubled in the past year as investors look for long-term stores of value.
However, some analysts warn that the rally could slow down if the Federal Reserve decides to raise interest rates. Historically, higher yields make non-yielding assets like gold less attractive — as seen in 2022, when gold fell from $2,000 to $1,600 after a series of Fed rate hikes.
For now, though, markets are betting the Fed’s next move will be a rate cut, which could further boost gold’s appeal.
Bitcoin Mirrors Gold’s Momentum
Bitcoin appears to be riding the same wave of safe-haven demand. The world’s leading cryptocurrency surged past $125,000 over the weekend — its strongest October rally on record — as investors poured billions into Bitcoin ETFs.
Market strategists at JPMorgan now forecast BTC could reach $165,000 by the end of the year if the current momentum continues.
Timot Lamarre, Head of Market Research at Unchained, said institutional confidence in Bitcoin is growing rapidly:
“The more institutional dollars experience Bitcoin returning toward all-time highs after dips, the more comfortable they’ll become as long-term holders.”
He added that if investors start viewing currency debasement as a structural issue rather than a short-term concern, Bitcoin could be entering its next major revaluation phase.
The Debasement Trade Returns
Rising national debts, political instability, and fiscal uncertainty have triggered what traders call the “debasement trade” — a broad rotation away from fiat assets and into Bitcoin, gold, and silver.
Both Bitcoin and gold are benefiting from the same global narrative: growing distrust in traditional monetary systems and a search for assets that can preserve value in uncertain times.
If gold’s latest breakout is any indicator, Bitcoin’s next all-time high might be closer than most expect.
