Bitcoin has surged to a record high of over $125,000, marking an impressive weekly gain of 11%, as reported by CoinDesk. This significant rally was propelled by a substantial demand for U.S.-listed spot exchange-traded funds (ETFs), which recorded a net inflow of $3.24 billion last week—the second-largest weekly inflow ever documented, according to data provider SoSoValue.
Other cryptocurrencies followed suit, with XRP, ETH, SOL, and DOGE all posting gains between 1% to 3% during the Asian trading hours. The timing of Bitcoin’s ascent coincides with ongoing uncertainty due to a U.S. government shutdown, which analysts suggest has amplified safe-haven demand for the cryptocurrency. Jeff Dorman, Chief Investment Officer of Arca, commented that historical patterns show a tendency for investors to turn to Bitcoin when trust in government and financial institutions wanes. He declared Bitcoin as likely an attractive investment in light of the current situation.
In addition to political factors, experts cite macroeconomic conditions as a driving force behind the Bitcoin rally. Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, pointed to rising global tensions and the likelihood of increased U.S. inflation. She noted that in a landscape of growing borrowing worldwide, concerns about currency stability are becoming more pronounced, which could positively impact Bitcoin’s appeal, especially given its historical positioning alongside assets like gold.
Acheson added that incoming market support in the form of lower interest rates, yield curve control, and significant monetary easing would likely enhance global liquidity, potentially benefiting riskier investments, including cryptocurrencies.
As of the latest data, Bitcoin continues to trade around $124,080, with many analysts optimistic about its performance in the typically bullish month of October.
