Bitcoin Hits $120K Mark and Overtakes Gold as 2025's Top Asset

Bitcoin (BTC), the premier cryptocurrency, has soared past the $120K mark. The cryptocurrency set a new all-time high record and became one of the best-performing assets of 2025 so far. The digital asset just logged its highest-ever weekly close at $115K after another record weekly close the week before. Bitcoin has gained approximately 30% year to date, surpassing gold, which has climbed 27% over the same period.

Bitcoin Surpasses Gold

According to Charlie Bilello, Chief Market Strategist at Creative Planning, this is an unprecedented shift. “We’ve never seen these two in the number one and number two spots for any calendar year,” he stated, referring to Bitcoin and gold. Both assets are traditionally seen as stores of value, especially during times of financial instability.

The strong performance of these "unproductive assets," however, is raising concerns among economists. Historically, when Bitcoin and gold lead the market, it reflects investor uncertainty or a lack of confidence in the broader economy. This trend may suggest a pullback from investments in productive sectors, such as infrastructure or innovation, which are critical for long-term economic growth.

Analysts warn that such a shift indicates deeper structural issues. “In a healthy economic environment, productive capital allocation should outperform. But when safe-haven assets dominate, it’s often a sign that investors are retreating from the real economy,” Bilello explained.

Bitcoin’s rapid rise comes in the wake of the “big beautiful bill” passed on July 3, which has contributed to a $15,000 price surge in less than two weeks. The Kobeissi Letter said that Bitcoin was in "crisis mode" because U.S. interest rates stayed high and pressure was building in all financial markets.

At the same time, the U.S. Dollar Index (DXY) has plummeted 11% in the last six months. During that time, trade talks between the U.S. and China went up and down, tariffs were put on hold, and military skirmishes broke out, especially with Iran. The U.S. had a record $316 billion budget deficit in May, which added to the stress and raised concerns about the country's long-term financial health. These events show that the global economy is not doing well, which is why investors are rushing to "safe havens" like Bitcoin and gold. Analysts say that the present trend may be good for crypto investors, but it might also mean that the overall economy is getting worse.