2025 was a roller‑coaster year for investors, with bold bets paying off big for some and crashing for others.
Trump‑linked Crypto Fizzled
When former President Donald Trump took office, a wave of crypto projects bearing his name surged. A memecoin he promoted, a token from First Lady Melania, and a mining company tied to the family all shot up, then fell sharply. By the end of the year the Trump memecoin had lost more than 80% of its value, Melania’s token was down nearly 99%, and the mining stock had dropped about 80% from its peak.
AI Short by Michael Burry Sparks a Dip
Asset manager Scion, led by Michael Burry, bought cheap put options on AI giants Nvidia and Palantir, betting their prices would fall. When the filing became public, both stocks slipped and the Nasdaq dipped. The move highlighted growing doubts about sky‑high AI valuations.
European Defense Stocks Rally
Changes in geopolitics sent European defense makers soaring. Germany’s Rheinmetall rose roughly 150% and Italy’s Leonardo jumped over 90% in 2025. Even ESG‑focused funds began adding defense names, and banks started issuing “European Defence Bonds.”
Gold and Crypto as a “Debasement Trade”
Heavy debt loads in the U.S., France and Japan sparked a narrative that investors should flee the dollar for gold and crypto. Gold hit all‑time highs, while Bitcoin briefly surged before slipping again. The idea proved mixed: gold stayed strong, but crypto and the dollar later recovered.
Korea’s Stock Surge
South Korea’s main index climbed more than 70% in 2025, helped by President Lee Jae Myung’s pledge to push the KOSPI to 5,000. Foreign money poured in, but local retail investors kept selling Korean stocks for U.S. shares and riskier overseas bets.
Bitcoin Showdown: Chanos vs. Saylor
Short‑seller Jim Chanos bet against Strategy Shares, a company that held large amounts of Bitcoin, while he went long Bitcoin himself. After a record high in July, Strategy’s shares fell 42% by November, rewarding Chanos’s bet and underscoring crypto’s boom‑and‑bust cycle.
Japanese Bonds Turned Profit for Shorts
Yields on Japan’s government bonds rose sharply in 2025, breaking a decades‑long low‑rate regime. The jump turned the infamous “widowmaker” short trade into a big winner for those betting bond prices would fall.
Credit Battles Pay Off
Funds that sided against other lenders in the Envision Healthcare debt fight earned roughly 90% returns after the company’s surgery unit was sold for $4 billion. The episode showed how aggressive creditor tactics can be highly lucrative.
Fannie Mae & Freddie Mac Meme Rally
Speculation that the Trump administration might privatize the two mortgage giants sent their shares up more than 350% in 2025. Hedge‑fund manager Bill Ackman and later Michael Burry piled in, betting on an IPO that could value the pair at $500 billion.
Turkish Carry Trade Crashed
Investors borrowed cheap foreign money to buy high‑yielding Turkish assets, attracted by 40%+ bond yields. A political shock in March caused a sharp sell‑off, wiping out about $10 billion and leaving the lira 17% weaker for the year.
Debt Market “Cockroach” Alerts
Smaller defaults, like Saks Global’s bond restructuring and New Fortress Energy’s steep losses, reminded investors that lax underwriting can bite. JPMorgan’s Jamie Dimon warned that one “cockroach” often signals many more problems ahead.
Takeaway
These stories show that big narratives can lift assets quickly, but they can also reverse just as fast. Keeping an eye on fundamentals, political risks, and market sentiment can help you avoid getting caught in the next rapid swing.
Remember, this is my view, not a prediction. Do your own research before investing.