Bitcoin News Today: Citadel's Ken Griffin Warns U.S. Economy's "Sugar High" Drives Exodus to Gold and Bitcoin

Citadel's Ken Griffin has highlighted a growing trend among investors seeking refuge from U.S. economic uncertainty, with gold and Bitcoin emerging as key safe-haven assets. The CEO warned of a "sugar high" in the U.S. economy driven by stimulus policies and de-dollarization pressures, as investors shift capital to hard assets. Gold futures hit a record $4,000 per ounce in October 2025, reflecting a 50% surge year-to-date, while Bitcoin reached an all-time high of $126,000 amid heightened demand for inflation hedgesKen Griffin Flags “Sugar High” in U.S. Economy as ... - CoinDesk^[1].

Griffin attributed the shift to concerns over U.S. sovereign risk, noting that the dollar's 10% decline against the DXY index since the start of 2025 has accelerated a "debasement trade." This strategy involves allocating to gold, silver, and cryptocurrencies to counteract currency devaluation. The U.S. government shutdown and expectations of Federal Reserve rate cuts-priced at 92% for a 25-basis-point reduction in October-have further fueled the trendKen Griffin Flags “Sugar High” in U.S. Economy as ... - CoinDesk^[1].

The interplay between macroeconomic factors and asset performance has created a synchronized rally in gold, Bitcoin, and equities. Griffin emphasized that liquidity injections from U.S. fiscal and monetary policies, including the Trump administration's "One Big, Beautiful Bill Act," have propped up markets but may mask structural risks. "We're seeing substantial asset inflation away from the dollar as people are looking for ways to effectively de-dollarize," he stated, noting that foreign investors are hedging U.S. equity exposure in their local currenciesKen Griffin warns U.S. economy is on a 'sugar high' amid gold rally ...^[3].

Bitcoin's role as a de-dollarization tool has expanded, with the cryptocurrency surging 9% in October 2025. This followed a record $9.72 trillion in crypto trading volume in August 2025, driven by institutional adoption and ETF inflows exceeding $28 billionKen Griffin Flags “Sugar High” in U.S. Economy as ... - CoinDesk^[1]. The asset's volatility, however, remains a concern, with Bitcoin dipping below $124,000 after hitting $125,000, illustrating its susceptibility to short-term liquidity shiftsCitadel's Ken Griffin: investors turn to gold, silver, and BTC in ...^[4].

Analysts highlight the broader implications of the trend. Binance Research noted that Bitcoin's dominance has eased to 57.2%, suggesting a potential rotation into altcoins as confidence stabilizes. Meanwhile, gold's resurgence as a safe-haven asset underscores its enduring appeal. "Gold's historical reliability during crises remains unmatched," experts observed, contrasting it with Bitcoin's correlation to equities and tech stocks.

The convergence of gold and Bitcoin as de-dollarization tools reflects a broader reevaluation of risk in the U.S. economy. Griffin's warnings underscore the fragility of the current market dynamics, where artificial stimulus and policy-driven optimism may not sustain long-term stability. As investors navigate the interplay between fiat devaluation and alternative assets, the demand for hard-hedging instruments is expected to persist, reshaping global capital allocation strategiesKen Griffin Flags “Sugar High” in U.S. Economy as ... - CoinDesk^[1].