The price of Bitcoin experienced a significant surge early Friday afternoon, pushing it close to matching the record high set in August. The leading cryptocurrency has gained momentum since the beginning of October—a month referred to as “Uptober” by traders.
Bitcoin rose sharply during the day, climbing from approximately $120,000 to a peak of $123,855, ultimately settling at around $122,346 after retracting some of its gains. This marks an increase of 1.3% for the day and over 11% for the week, according to CoinGecko. The previous all-time high of $124,128 was achieved in mid-August, and Friday’s price spike represents the closest Bitcoin has come to that figure since then.
Despite this recent rally, September saw Bitcoin fall below $108,000, prompting analysts from Glassnode to note signs of exhaustion among long-term holders who were cashing out as ETF flows began to slow. However, the onset of October, historically a strong month for Bitcoin—having delivered gains in nine of the past ten years—has reignited bullish sentiment among traders.
In the past 24 hours, traders betting against Bitcoin have incurred substantial losses, with $153 million in Bitcoin short positions liquidated, according to CoinGlass. Overall, the cryptocurrency market saw nearly $499 million in positions wiped out, with shorts accounting for $294 million of that total.
This latest surge in Bitcoin’s price coincides with gains in gold and U.S. stocks, fueled by speculation that the Federal Reserve may cut interest rates this month. The Fed has faced pressure from President Donald Trump to lower borrowing costs, contributing to a favorable environment for both crypto markets and stocks, particularly in periods of low interest rates. Experts have previously indicated that a reduction in interest rates could bolster Bitcoin’s price.
Joe DiPasquale, CEO of crypto asset manager BitBull Capital, mentioned that Bitcoin briefly tested its record highs before retreating as traders took profits. Despite this, he maintains a bullish outlook on the broader market, pointing to a likely prolonged government shutdown that could sustain interest in hard assets like Bitcoin as a viable alternative store of value.
This year, Bitcoin’s rise has been considerably influenced by a pro-crypto political environment following President Trump’s election. Since taking office, he has advocated for policies favorable to the digital asset sector, including proposals for a national Bitcoin reserve.
However, compared to previous market cycles, Bitcoin’s post-halving price increase has been relatively muted. With a growing market cap, it now requires significantly more capital to drive price changes, and volatility has decreased following the approval of U.S. Bitcoin ETFs in 2024.
Both Bitcoin and gold have achieved substantial price increases since the onset of the U.S. government shutdown earlier this week. Strah Savinja, Head of Data and Analytics at FRNT Financial, highlighted that Bitcoin’s appeal as a safe haven asset is becoming more apparent and solidified, particularly as confidence in traditional financial institutions wanes.
