Gold and Bitcoin gained value while the US Dollar and Japanese Yen fell, driven by political uncertainties. Investors are shifting towards safer assets amidst concerns in global economies.
Gold and Bitcoin increase in value
US Dollar weakens amid government shutdown
Japanese Yen drops due to political change
Investors seek safety in alternative assets
Political uncertainty affects Eurozone
Fiscal concerns influence market trends
Gold and Bitcoin are rising as investors turn away from major currencies like the US Dollar and Japanese Yen, driven by growing worries about global economies.
Fiscal Worries Drive “Debasement Trade”
Growing debt and fiscal challenges across major economies—the US, Japan, and Europe—are intensifying a so-called “debasement trade.” Investors are fleeing traditional currencies and moving capital into assets like gold, silver, and Bitcoin, seen as safer stores of value amid uncertainty.[1][2][3]
Currency Gold and Bitcoin Movements Reflect Political Instability
Japan’s Yen: The yen dropped to an eight-month low near ¥153 per dollar after Sanae Takaichi, a pro-stimulus leader, became the leader of Japan’s ruling Liberal Democratic Party, raising expectations for aggressive fiscal spending and less likelihood of immediate rate hikes by the Bank of Japan. This led to the “Takaichi trade,” whereby the Nikkei surged and the yen weakened sharply.[4][5][6][7][1]
US Dollar: The dollar has weakened roughly 30% against Bitcoin this year amid prolonged US government shutdowns and political gridlock, including budget disputes between Democrats and Republicans. Although the dollar showed slight retracement at times, the pressure remains significant.[8][9][10][11][1]
Euro and France: The euro declined about 0.6% against the dollar amidst deep political turmoil in France, including the resignation of Prime Minister Sébastien Lecornu and parliamentary fragmentation, making consensus on the budget challenging. France faces credit rating downgrades and fiscal uncertainty with little progress on debt reduction expected soon.[12][13][14][15][1]
New Price Milestones for Precious Metals and Bitcoin
Gold topped $4,000 per ounce for the first time, reaching fresh records driven by demand for safe-haven assets amid geopolitical and economic instability.[2][16][17][1]
Silver hit its highest price in four decades, nearing all-time highs around $50 an ounce.[18][2]
Bitcoin reached new all-time highs above $120,000 as investor appetite for cryptocurrencies surged alongside metal prices. Analysts at JPMorgan Chase forecast Bitcoin could rise to $165,000 by year-end.[3][19][1]
Expert Insights on Market Dynamics
Chris Weston, Pepperstone Group’s head of research, highlighted gold and Bitcoin as critical hedges against currency debasement caused by political instability. JPMorgan analysts noted the renewed pattern of US dollar weakness paired with strong-asset rallies, echoing trends from previous financial crises and quantitative easing eras.[10][1][3]
Fiscal and political challenges in key global economies have triggered a broad shift from fiat currencies to alternative assets. The US dollar and Japanese yen have weakened significantly due to government shutdowns and political instability, while gold, silver, and Bitcoin have surged, setting new price records as investors seek protection against currency debasement.
Rachel Patel is a senior news editor and journalist specializing in political journalism and digital media. With over seven years of professional experience, she is recognized for her accuracy, source verification, and audience-focused reporting approach.
Rachel earned her M.S. in Journalism & Media Studies from Stanford University (2018), where she developed expertise in media ethics, political communication, and digital storytelling.
Her career has centered on bridging traditional political reporting with the fast-paced world of online journalism. She has contributed to major global media outlets, analyzing how digital platforms — from YouTube and Reddit to TikTok and Bluesky — shape political narratives, influence public opinion, and redefine news consumption.
Now based in Berlin, Germany, Rachel serves as a Senior News Editor at Faharas NET, leading coverage on digital politics, media literacy, and social communication trends in the modern information landscape.
Bloomberg is the website for Bloomberg L.P., a global company that provides business, financial, and data services, news, and media across multiple platforms. The site features real-time and historical data, news from its divisions like Bloomberg News and Bloomberg Businessweek, and access to its professional services, such as the Bloomberg Terminal, which is a widely used financial data and analytics platform.
Elena Voren is a senior journalist and Tech Section Editor with 8 years of experience focusing on AI ethics, social media impact, and consumer software. She is recognized for interviewing industry leaders and academic experts while clearly distinguishing opinion from evidence-based reporting.
She earned her B.A. in Cognitive Science from the University of California, Berkeley (2016), where she studied human-computer interaction, AI, and digital behavior.
Elena’s work emphasizes the societal implications of technology, ensuring readers understand both the practical and ethical dimensions of emerging tools. She leads the Tech Section at Faharas NET, supervising coverage on AI, consumer software, digital society, and privacy technologies, while maintaining rigorous editorial standards.
Based in Berlin, Germany, Elena provides insightful analyses on technology trends, ethical AI deployment, and the influence of social platforms on modern life.
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