What happened?
Investors pushed into Bitcoin, gold, and silver as worries about currency debasement and fiscal instability grew in major economies. Japan’s yen fell about 1.6% after pro-stimulus politician Sanae Takaichi led the race for prime minister, and the dollar weakened amid U.S. shutdown and debt concerns. Bitcoin surged past $125,000 and gold hit fresh highs while exchange Bitcoin reserves dropped to multi-year lows.
Who does this affect?
Retail and institutional investors are being pushed to reallocate from fiat assets into hard assets like crypto and precious metals. Traders and funds face higher volatility and tighter liquidity as exchange balances fall and demand spikes. Central banks and policymakers also feel the pressure because their actions (or inaction) can amplify or calm these flows.
Why does this matter?
Big flows into Bitcoin and precious metals mean prices could keep rising and markets may stay more volatile, affecting portfolio allocations across equities and bonds. Tighter supply on exchanges can make rallies more pronounced and harder to unwind, increasing market risk. Policy moves from central banks or governments will likely be a key driver of near-term direction, so investors should expect sharper, policy-driven swings.