The dollar is down over 10% in 2025, heading for its worst year since 1973

The dollar is heading for its worst year since 1973, falling more than 10% year-to-date while nearly every other major asset class explodes upward. Just last night, Bitcoin hit a new all-time high of $125,000, pushing its total market value to $2.5 trillion, as Cryptopolitan reported.

Gold is now close to $4,000 an ounce after hitting 40 record highs in 2025, with a market value of $26.3 trillion, more than ten times Bitcoin’s size. Silver has surged more than 60% this year to $2.7 trillion in market value. All three (gold, silver, and bitcoin) now rank among the ten largest assets in the world.

These moves are happening alongside an equity boom. The S&P 500 is up 40% in six months, adding $16 trillion in market capitalization, while the Nasdaq 100 has posted six straight months of gains, a streak that’s only happened six times since 1986.

The so‑called Magnificent 7 companies are pumping more than $100 billion per quarter into capital expenditures to fund the AI revolution. Assets that were traditionally seen as safe havens are no longer acting like hedges. They are now climbing together with stocks.

Safe-haven assets rise alongside equities

Data from Bloomberg shows that the correlation coefficient between gold and the S&P 500 reached a record 0.91 last week, meaning both markets are moving in the same direction 91% of the time.

Investors are chasing anything with a price chart (safe havens, risk assets, real estate, crypto) as inflation rebounds and the labor market weakens. The Federal Reserve is cutting rates into 4.0% annualized inflation, something that hasn’t happened since the 1990s.

It is also easing into 2.9% Core PCE inflation for the first time in decades. The dollar has already lost 40% of its purchasing power since 2000.

Market‑based inflation expectations for the next five to ten years are rising as the Fed signals less control over long‑term yields. The surge in all asset classes signals that people are not just hedging anymore; they’re repositioning for a new world where the Fed’s grip is weaker.

The AI revolution is driving an investment boom. Technology spending on that scale has not been seen since the rise of the internet.

Fed rate cuts fuel broad rush into assets

Investors are piling into everything as the Fed pivot takes shape. The dollar’s decline is part of that story, but the rush is broader. Asset owners are building huge gains while the rest of the population is left behind. The bottom 50% of U.S. households now hold just 2.5% of total wealth.

Those who already own stocks, crypto, or commodities are capturing the upside, while non‑owners are missing out.

Since ChatGPT launched in November 2022, job openings have fallen, but stocks have soared, showing how markets are reacting to structural change rather than short‑term headlines.

This generational shift has made stocks, commodities, bonds, and crypto more tradable and investable at the same time. It is the first time in decades that safe havens, risky assets, and inflation‑linked trades are all climbing together.

Asset prices are being rewritten in real time, and the scale of the rush shows no sign of slowing.

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