The “Everything Rally”: Markets Surge as Confidence in the Dollar Fades

Global markets are witnessing an extraordinary and paradoxical surge. Both risk assets such as equities and safe-haven assets like gold and Bitcoin are climbing simultaneously. The S&P 500, gold, silver, and Bitcoin (BTC) are all trending higher — a rare alignment that defies traditional market logic.

Analysts argue that while the economy appears robust, the underlying prosperity is deceptive. It’s not fueled by productivity or innovation but by a growing loss of faith in fiat currencies, particularly the U.S. dollar.

A Market Euphoria Without Precedent

In an analysis posted on X (formerly Twitter), The Kobeissi Letter highlighted what it called a “financial anomaly” — a synchronized rise in everything from stocks to gold and Bitcoin. According to BeInCrypto, Bitcoin recently broke through $125,000, gaining over 10% in a week, while silver and gold have also staged powerful rallies, with silver up more than 60% in 2025.

“Gold has hit 40 record highs this year and is now valued at $26.3 trillion — more than ten times the total market value of Bitcoin,” the report noted, emphasizing how all three assets now rank among the world’s ten largest.

Traditionally, safe havens like gold rally when investors flee riskier assets. Yet this cycle breaks convention: both categories are rising in tandem, suggesting a profound shift in investor psychology. The S&P 500 has jumped 39% in six months, while the Nasdaq 100 has logged six straight months of gains — a streak seen only six times since 1986.

The Kobeissi Letter further observed that the correlation between gold and the S&P 500 reached a record 0.91 in 2024, meaning the two moved in near-perfect sync.

The Dollar’s Decline: A False Boom

Behind the euphoric market narrative lies a darker macro story — the decline of the U.S. dollar. Analysts argue that this “boom” reflects not genuine economic strength, but a flight from fiat currencies as confidence erodes.

The Kobeissi Letter described 2025 as potentially the dollar’s worst year since 1973, when the collapse of Bretton Woods ended the gold standard. So far, the greenback has fallen 10% this year and lost roughly 40% of its purchasing power since 2020.

Markets now expect the Federal Reserve to cut rates again in October, with a 95.7% probability according to the CME FedWatch Tool. Such easing, following a September reduction, could accelerate the dollar’s decline.

“The Fed is cutting rates into persistent inflation,” The Kobeissi Letter wrote. “When safe havens, risk assets, real estate, and inflation all rise together, it’s not growth — it’s a monetary shift. The Fed has lost control of long-term yields.”

The Illusion of Prosperity

Market commentator Shanaka Anslem Perera described the situation as an “illusion of prosperity,” where rising asset prices mask the devaluation of money itself.

“The Fed is cutting rates into inflation, printing credibility while calling it policy,” he said. “When gold, Bitcoin, equities, and real estate all rise together, it’s not a bull market — it’s monetary panic in slow motion.”

Perera warned that this simultaneous surge across asset classes suggests wealth isn’t being created — the denominator is dying. In his view, the soaring valuations represent not strength, but the collapse of trust in the dollar.

“This is not a boom,” he concluded. “It’s the endgame of a system priced in paper and powered by illusion.”

A Rally Built on Shifting Trust

As markets roar and the dollar weakens, this “everything rally” reveals more than simple optimism. It underscores a fundamental shift in what investors value and trust. The world isn’t celebrating economic growth — it’s preparing for a monetary reset.