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Akbar Novruz

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The World Uncertainty Index (WUI) has reached an unprecedented peak, surpassing levels previously recorded during some of the most turbulent events in modern history, including the 9/11 terrorist attacks, the Iraq War, the 2008 global financial crisis, and even the COVID-19 pandemic, AzerNEWS reports.

According to the Economist Intelligence Unit (EIU), which compiles the index, this spike signals that global uncertainty has reached a historical high, reflecting widespread instability across political, economic, and social spheres.

The WUI measures the frequency of the term “uncertainty” in country reports, providing a unique lens to quantify how unpredictable or volatile conditions are perceived globally.

The more often the word "uncertainty" is mentioned in EIU country reports, the higher the country’s uncertainty index.

Higher uncertainty generally translates into lower investment, slower economic growth, and increased financial volatility.

Last year, the WTI hit its ATH of 106,862.2 during Q3 and remained only slightly below 100,000 during Q4.

The global tariff tensions, geopolitical conflicts in Eastern Europe, West Asia, and Latin America, the weakening dollar, and the threat to the Federal Reserve's independence during the Donald Trump administration are the primary factors behind the uncertainty.

U.S. market rallying amid record 'uncertainty'

But it might seem strange why a metric indicating uncertainty has been hitting record highs while nearly all the major market indicators are performing exceedingly well on the charts.

Whether it's the NASDAQ Composite (above 24,000 points), the Nasdaq 100 (above 26,000 points), or the S&P 500 (above 7,000 points), nearly every market benchmark has been hitting new record highs.

Meanwhile, the U.S. dollar index—an index of the value of the USD relative to a basket of foreign currencies—is at its lowest point at around 95.

So, the U.S. market is rallying higher while the general public is losing faith in the fiat currency.

The dollar debasement has driven traders to flock to precious metals like gold and silver. Gold surpassed $5,500 per ounce and silver surpassed $100 per ounce to hit new record prices recently.

But unlike precious metals, Bitcoin (BTC) has failed to leverage the dollar debasement trade of late.