Citadel’s Ken Griffin warns of a “debasement trade” as investors flock to Bitcoin and gold, hitting record highs. Gold soared to $3,900, while Bitcoin surpassed $126,000 in October. Analysts attribute this surge to macro conditions driving capital into scarce assets like BTC and gold.

Investors are abandoning the US dollar for gold and Bitcoin, causing concern among financial experts. Griffin expressed worry over the trend of assets moving away from the dollar, fearing substantial asset inflation. Gold and Bitcoin broke records, with gold reaching $3,900 and Bitcoin hitting $126,556.

Gold has acted as a hedge during market stress, climbing to $3,900 on expectations of a Federal Reserve rate cut and global uncertainty. Bitcoin has emerged as a digital counterpart to gold, setting its own record in the opening days of October during “Uptober,” a historically strong month for crypto.

The dollar’s diminishing role in global trade has accelerated, with more countries settling cross-border transactions in local currencies or digital assets. Bitcoin and gold now serve as “dual debasement trades,” favored by investors seeking scarce, non-sovereign assets amidst fiscal deficits and loose monetary policy.

Bitcoin continues to rise, nearing $125,000, with analysts foreseeing further gains. Gold remains supported by macroeconomic challenges, making the pairing of the two assets central in the global “debasement trade” trend. This shift reflects a growing lack of faith in the dollar and a preference for physical and digital scarcity in capital markets.

Read more at Yahoo Finance: Citadel Founder Ken Griffin Warns of Run From Dollar Into Bitcoin and Gold as Both Assets Hit New ATHs