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- š° 5 Fact Friday: The Surprise Star Of 2025
š° 5 Fact Friday: The Surprise Star Of 2025
Hint: itās not gold or bitcoin.
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Good morning, Maniacs!
The Roundhill meme stock ETF is making a comeback, Polymarketās 27-year-old founder just became the youngest self-made billionaire, and earnings season kicked off with a bang: Delta, Pepsi, and Leviās all beat expectations.
In short, the market is running hot.
But the real story? The macro waves underneath the surface.
Today, weāre looking at the AI ecosystemās circular money loop, the growing ādebasement tradeā, and this yearās anti-dollar darling. (Hint: itās not gold or bitcoin.)
Letās dive in! š
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MARKETS
1. Is The AI Boom Built On A Loop? š
If the AI trade looks unstoppable right now⦠thatās because a lot of the money is running in circles.
Major players, from chipmakers to model builders to cloud providers, are increasingly doing deals with one another to fund the cost of compute.
Take OpenAI: The company is expected to rack up tens of billions in operating losses over the next few years. Traditional contracts wouldnāt cut it. Instead, itās using a mix of equity deals and purchase commitments to fund the infrastructure it needs to compete.
In a market moving at breakneck speed, circular financing is what keeps the engines running ā for now.
But hereās why some are calling the setup āincestuousā:
Nvidia ā OpenAI | Deal Value: $100B
Nvidia invests in OpenAI, which turns around and buys Nvidia chips to train models.OpenAI ā Oracle | Deal Value: $300B
OpenAI buys cloud compute from Oracle, inflating Oracleās value ā enabling it to buy more Nvidia chips.OpenAI ā CoreWeave | Deal Value: $22.4B
OpenAI signs a massive cloud compute deal and gets a $350M equity stake in return. CoreWeave buys its chips from⦠yep, Nvidia.OpenAI ā AMD | Deal Value: Multiābillion
OpenAI commits to buying 6 gigawatts worth of chips and gets stock warrants for up to a 10% stake in AMD.Nvidia ā CoreWeave | Deal Value: $6.3B
Nvidia invests in CoreWeave, which uses the cash to buy Nvidia chips. Bonus twist: Nvidia also agrees to purchase any excess capacity from CoreWeave.
What Could Go Wrong š»
Overāreliance on a few players could make the system fragile if one domino wobbles.
For example, if OpenAI were to miss its revenue projections, the consequences could ripple through Oracle, CoreWeave, AMD, and Nvidia. Those four companies alone carry a collective $6T market cap.
Valuations may reflect recycled capital, not real demand.
What Could Go Right š
If AI delivers real economic lift, these tight partnerships could supercharge growth.
Aligned incentives can accelerate innovation and adoption.
Companies like Nvidia and OpenAI could become the new ārailsā of the digital economy.
With Nvidia hitting new highs this week, investors clearly arenāt stepping off the AI train ā but the whispers of a bubble are back. It all comes down to one thing: can the tech deliver results?
What worries you most about AI? |
COMMODITIES
2. The Debasement Trade Is On šµ
At the start of the year, 56% of readers said gold wouldnāt hit $3,000. Whoops. It just passed $4,000.
Gold is now up 52% year-to-date, making 2025 its best run since 1979. And itās not just gold catching fire.
Silver surged 64% this year, breaking $50/oz for the first time since 1980
Platinum is up 85% and trading near 13-year highs
Mining stocks are along for the ride, too. Pan American Silver ($PAAS) is up 93%, First Majestic Silver ($AG) is up 155%, and leveraged gold miner ETFs have popped more than 600% in 2025.
Whatās behind this boom?
The Debasement Trade š”ļø
Investors are piling into tangible stores of value ā assets that canāt be devalued by inflation, diluted by debt, or debased by monetary policy. Why?
The U.S. dollar has dropped ~9% this year
U.S. debt is nearing $38 trillion, and interest costs now exceed defense spending
The Fed is pivoting to rate cuts, even as inflation remains sticky
In other words, the market is hedging against fiscal dysfunction, inflation risk, and eroding confidence in central banks.
Structural Demand Is Taking Over š¦
This could be more than a speculative bet. Analysts say weāre seeing a shift from short-term gold trades to long-term structural flows:
Central banks are buying gold at a record pace
ETFs tied to silver and gold have seen historic inflows
Investors are using a barbell strategy: AI on one end, gold on the other
So, is $5,000 gold next? Maybe. Maybe not. But one thingās for sure ā as long as paper assets look shaky, the shiny stuff isnāt going out of style.
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CRYPTO
3. Bitcoin Hits $125K, Right On Schedule š
Back in June 2024, I laid out a post-halving forecast that pointed to Bitcoin reaching $100K to $150K by October 2025.
At the time, Bitcoin was trading under $70K ā just shy of its all-time high. This week, it cracked $125K. That 80% rally puts the worldās largest crypto right at the midpoint of the projected range, and right on time.
Now, before I update my LinkedIn to āBitcoin Prophet,ā letās take a look at the catalysts behind the move:
ā ETF demand is booming. Spot Bitcoin ETFs brought in $3.2 billion last week, and BlackRockās $IBIT has officially become its most profitable ETF. The influx of capital has also helped tame volatility, a stark contrast to prior bull runs.
ā As Chris Robins of Axelar put it, the rally reflects growing recognition that "institutions are starting to⦠replace legacy banking infrastructure."
ā Regulatory tailwinds have played a role, too. The administrationās friendlier stance toward crypto, along with eased accounting rules, is paving the way for broader adoption.
ā The Fed is back in the money-printing business. The M2 money supply is growing at its fastest pace in three years, sending investors scrambling for inflation hedges and hard assets.
ā Dollar doubts are rising. With confidence in the greenback weakening, Bitcoinās appeal as an alternative store of value is gaining traction among both retail and institutional players.
ā Even central banks are taking notes. Deutsche Bank predicted that nations will begin holding Bitcoin as a reserve asset by 2030, a shift that could bring even more legitimacy and capital into the space.
With rate cuts ahead and Q4 historically being Bitcoinās strongest stretch, the setup is strong. No victory lap yet ā but letās just say the 2024 halving cycle is playing out exactly as expected.
PERSONAL FINANCE
4. Tips To Maximize Your FDIC Coverage š”ļø
The Federal Deposit Insurance Corporation (FDIC) was established in 1933 to protect your hard-earned cash in case your bank goes belly up.
If your bank is FDIC-insured, your deposits are automatically covered up to $250,000 per depositor, per ownership category.
What Does FDIC Insurance Protect?
Checking accounts
Savings accounts
Money market deposit accounts (MMDAs)
Certificates of deposit (CDs)
Cashierās checks and money orders
In other words, your regular bank deposits are safe and sound.
What Does FDIC Insurance NOT Protect?
Stocks, bonds, and mutual funds
Crypto assets
Annuities and life insurance policies
Municipal securities
Safe deposit box contents
If youāre investing or storing gold bars in a safe deposit box, youāre on your own.
How Can I Maximize My Protection?
Use Different Categories: Individual accounts, joint accounts, and accounts with beneficiaries each get separate $250,000 coverage.
Add Beneficiaries: Your deposit is covered up to $250,000 per unique beneficiary you name. For example, a single owner with one account naming four different children can insure up to $1,000,000 at that one bank.
Spread It Out: Keep your deposits under $250,000 per bank and ownership category. If youāve got more cash, spread it across different banks.
How Fast Do I Get My Money Back If A Bank Fails?
The FDIC usually pays depositors within a few days ā typically the next business day. You might get a new account at another insured bank or a check for your insured balance.
Why Should I Care?
Since its inception, no depositor has lost a single cent of FDIC-insured funds. It's like a financial security blanket, ensuring your money is safe even if your bank isn't.
Not sure if your bank is FDIC-insured? Use the BankFind Suite to double-check.
STOCKS
5. Guess That Stock šµļøāāļø
Just a decade ago, this company was on the brink of bankruptcy. Now, itās Nvidiaās closest rival in the high-end AI market.
Can you guess the stock?
This Silicon Valley veteran, worth roughly $380 billion, is now the largest female-run company in the world.
CEO Lisa Su is one of the most respected women in tech, with three degrees from MIT and an impressive turnaround under her belt.
The chipmakerās processors power everything from gaming consoles and Teslas to the worldās fastest supercomputers.
This week, Su signed a blockbuster deal with OpenAI for 6 gigawatts of AI computing power. In return for billions in revenue, OpenAI was granted the right to buy up to 10% of the firm.
The company goes by a three-letter acronym. The middle letter is āM,ā for Micro. Fitting, since its chips have components 0.003% the width of a strand of hair.
Got a guess? Tap here for the answer ā
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DISCLAIMER: The information provided in this newsletter is for informational purposes only and should not be construed as financial advice or a solicitation to buy or sell any assets. All opinions expressed are those of the author and are subject to change without notice. Please do your own research or consult with a licensed professional before making any investment decisions.
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