Fiscal Fears Fuel Flight to Bitcoin, Gold as Major Currencies Falter

Mounting fiscal uncertainty in major economies is accelerating a shift into Bitcoin, gold, and silver, as investors brace for further currency ￰0￱ Takeaways: Investors are moving into Bitcoin, gold, and silver as fears of currency debasement rise in major economies. Japan’s yen dropped 1.6% after pro-stimulus politician Sanae Takaichi led the PM race, adding pressure to global fiat currencies. Bitcoin’s surge past $125K and gold’s fresh highs reflect growing demand for hard ￰1￱ so-called “debasement trade” has gained traction amid rising national debts and political instability, prompting a broad retreat from fiat assets, according to a Monday report by ￰2￱ Sinks 1.6% as Pro-Stimulus Candidate Takaichi Leads Japan PM Race In Japan, the yen dropped 1.6% on Monday after pro-stimulus lawmaker Sanae Takaichi emerged as the frontrunner to become the country’s next prime ￰3￱ expected policies dim hopes for near-term monetary tightening, sending the currency to record lows against both Bitcoin and gold.

Meanwhile, the dollar continues to weaken under the weight of a prolonged ￰4￱ shutdown and debt concerns, losing roughly 30% of its value against Bitcoin since the start of the ￰5￱ offers little ￰6￱ euro slipped 0.1% against the dollar as fresh political tension in France clouded the ￰7￱ region’s high debt burden and fragmented policy responses have further fueled investor ￰8￱ traditional currencies falter, Bitcoin is hovering near its latest all-time high above $125,000, while gold touched fresh records and silver edged closer to its peak. Gold's price increase signals a weakening of the dollar. I believe Bitcoin forecasts based on the dollar will underestimate Bitcoin's future ￰9￱ is not the prettiest chart, it looks like it was drawn with a shaky hand, but it shows what would happen if Bitcoin's "value"… ￰10￱ — apsk32 (@apsk32) October 6, 2025 Chris Weston, head of research at Pepperstone Group, described the surge in demand for these assets as a classic momentum trade, amplified by political chaos and inflation risks.

“You’ve got to be in it,” he ￰11￱ analysts echoed that sentiment in a research note dated Oct. 3, pointing to Washington’s dysfunction and the dollar’s familiar pattern of losing ground to alternative ￰12￱ likened the current flight to gold and Bitcoin to investor behavior during the 2008 financial crisis and years of aggressive monetary ￰13￱ a minor rebound in the Bloomberg Dollar Spot Index on Monday, the greenback remains down about 8% for the ￰14￱ global markets gripped by uncertainty, Bitcoin and gold are increasingly seen not just as speculative plays but as defensive havens against fiscal mismanagement and fiat ￰15￱ Surges to New All Time High Above $125K As reported, Bitcoin surged to a new all-time high above $125,700 on Sunday morning, breaking past its previous record of $124,500 set in August, according to data from ￰16￱ milestone came as centralized exchanges report the lowest levels of Bitcoin reserves in six years, signaling a tightening supply backdrop amid growing investor ￰17￱ sharp recovery marks a strong start to October, often dubbed “Uptober” by traders, after Bitcoin slipped to $107,800 in early ￰18￱ the past week, the asset has climbed steadily, buoyed by renewed optimism and tightening exchange liquidity.

Notably, Bitcoin’s surge past $124,000 has driven Strategy Inc.’s BTC holdings to a record $77.4 billion, the company revealed ￰19￱ firm, which began accumulating BTC in 2020 as a corporate treasury asset, has seen its holdings grow exponentially from an initial valuation of $2.1 billion to over 35 times that amount in just five years.