2025 TradFi Market Review: The Debasement Trade
The real story of 2025 wasn’t U.S. equities or AI—it was capital flight from fiat.
▪ Global equities outperformed the S&P 500 as capital rotated away from crowded U.S. trades
▪ Fixed income failed as a defensive hedge, while gold delivered the strongest risk-adjusted returns
▪ Sovereign gold accumulation drove the hard-asset rally, leaving Bitcoin temporarily behind
▪ USD weakness amplified underperformance of U.S. assets in global terms
Outlook 2026:
Debasement is now a core macro driver. Non-U.S. assets and gold remain structurally supported, while Bitcoin is positioned for a delayed catch-up. Cash is the riskiest asset—allocation is everything.
