Citadel’s founder and CEO Ken Griffin confirmed the trend to pick silver, gold, and BTC as a ‘debasement trade’, counting on security against weakening fiat. Griffin believes individual investors are seeking ways to de-dollarize.
Citadel’s founder and CEO Keith Griffin commented that individual investors are seeking ways to escape dollar positions. The recently emerging ‘debasement trade’ means more investors are moving into silver, gold, and BTC, as tools for avoiding the dollar’s inflation.
“We’re seeing substantial asset inflation away from the dollar as people are looking for ways to effectively de-dollarize, or de-risk their portfolios vis-a-vis US sovereign risk,” Griffin said in an interview for Bloomberg.
The ongoing US government shutdown preceded record prices for gold and later BTC, in what has emerged as a ‘debasement trade’ in 2025. The official shutdown from October 1 onward caused one of the record rallies for BTC, breaking to new all-time peaks. In comparison, during the 2023 bear market, the US government impasse caused a 30% price drop.
Based on Polymarket predictions, the overwhelming expectation is that the shutdown will continue, ending after October 15. If the BTC rally continues without a correction, it would further confirm the debasement trade narrative.
Griffin: US economy may be over-supplied with fiat
Griffin claimed the US economy was operating with a stimulus that would be fitting in a recession. The inflow of liquidity is boosting all markets, as BTC, gold and S&P 500 now move together to new peaks.
Griffin’s comments come at a time when the US M2 money supply is expanding once again. The months of expansion translated into a BTC rally, but the real trigger for the new all-time peak was the US government shutdown.
Crypto has been used as a hedge against inflation in highly insecure markets and in cases of currency shocks. However, the current market cycle sees BTC emerge as a safe haven for developed markets.
BTC dips under $124,000
Despite the overall expansion trend, BTC remains relatively volatile. After breaking new all-time highs above $125,000, BTC dipped to $123,900, as fluctuations in that range are still common.
BTC now stands at a crossroad in the short term, for either achieving an extended cycle, or ending the current bull rally. Over the course of 2025, the bull market was expected to continue in 2026 as well.
The addition of BTC as a debasement trade asset may extend the cycle and boost the prices beyond a short-term rally. This time around, BTC selling and capitulation are more strategic, and the asset has traded without any deep drawdowns of up to 70% or more. In the short term, BTC is still prone to rapid price moves based on liquidations, while retaining the overall bullish trend in 2025.
BTC still trades on long-term bullish expectations for a higher price range. Inflows into ETF and treasury companies continue, with limited selling by whale wallets. At the same time, accumulation is expanding, and corporate buyers are also increasing their treasuries.