How Bitcoin Breaks Records as the Dollar Falls Apart

How Bitcoin Breaks Records as the Dollar Falls Apart

Summary / TL;DR

Bitcoin just pushed past a fresh all time high, and the timing is no accident. The U.S. dollar is having its worst year since 1973, and investors are shifting their trust toward assets that feel safer and more predictable.

Key Takeaways

• The U.S. dollar is down more than 10 percent this year, putting it on track for its worst performance since 1973.
• Bitcoin has climbed above 125,000 dollars as investors look for protection during a period of economic and political instability.

Something big is happening in the market right now, and it goes far beyond the usual crypto excitement. Bitcoin is not only climbing. It is breaking records, and it is doing it at the exact moment the U.S. dollar is collapsing. According to The Kobeissi Letter, which was highlighted by Cointelegraph, we are in the middle of a major global shift that could change the way people store and protect their wealth.

The U.S. dollar has already dropped more than 10 percent this yea and if it finishes the year at this pace, it will be the weakest performance the dollar has had since 1973. That kind of fall forces investors to rethink what they can trust. Gold is rising too, now trading around 3,880 dollars per ounce, which is extremely close to its own highest level ever recorded. Even the S&P 500 is soaring, up more than 40 percent in the past six months, which is unusual during moments of economic stress. Safe haven assets and risk assets normally do not rise together, and this strange mix suggests a deeper problem in the system.

The Kobeissi Letter notes that the dollar has lost about 40 percent of its purchasing power since the year 2000. That is not a small slip. It is a serious erosion of confidence in traditional money. Add to that a government shutdown, weak labor data, and general political uncertainty, and you start to understand why investors are moving toward Bitcoin as a store of value.

Sygnum Bank executive Fabian Dori also pointed out that many investors no longer see Bitcoin as a simple trading tool. They see it as a form of monetary technology that offers protection from political decisions and economic mismanagement. As more people focus on the weaknesses in the current system, Bitcoin looks less like a gamble and more like a solution.

This moment feels different from previous crypto rallies. The dollar is slipping, faith in traditional systems is weakening, and Bitcoin is stepping into a much larger role. Its rise to new highs is not happening by chance. It is happening because people are searching for something they can trust, and right now Bitcoin is filling that gap.