Bitcoin reached a significant milestone today, breaking through resistance and hitting an all-time high of $124,500 on Coinbase. This surge followed nearly two weeks of testing this pivotal level. The price rally coincided with the onset of what has become the longest government shutdown in U.S. history, involving the 45th and 47th presidents, Donald Trump. With lawmakers unable to reach an agreement on funding, the shutdown officially commenced on Wednesday.
This political impasse has prompted investors to gravitate toward decentralized assets, with Bitcoin experiencing a noteworthy 14% increase in just one week. Many traders are seeking a hedge against the ongoing uncertainty in Washington, which has exacerbated an already volatile market.
Geoff Kendrick from Standard Chartered remarked that this shutdown carries significant weight compared to previous ones. He pointed out that during Trump’s last shutdown from December 2018 to January 2019, Bitcoin displayed minimal movement due to a vastly different context. Currently, however, Bitcoin is directly responding to political risks, as evidenced by its connection to U.S. Treasury term premiums.
Just two days prior to Bitcoin’s rally, Standard Chartered projected that the cryptocurrency was poised to achieve a new high and even suggested it could reach $135,000 in the near future. In addition to Bitcoin, other assets are also attracting attention; for instance, spot gold rose 0.5% to $3,876.55 per ounce on Friday, marking over a 2% weekly gain. This uptick in demand for safe-haven assets reflects the pressures similarly driving the rise in cryptocurrencies.
Amid the political standoff, Trump issued warnings about potential cuts to benefit programs if a funding deal is not reached, threatening reductions that could affect “large numbers of people.” His comments have further fueled concerns about political instability, thus influencing market dynamics.
Bitcoin has shown impressive growth, surging about 30% in 2025, with more Wall Street firms beginning to incorporate it into their portfolios, viewing it as a credible investment. Global investors are increasingly recognizing Bitcoin not just as a speculative asset but as a key component of a broader investment strategy.
On-chain data indicates significant movements by large holders, or “whales.” A 30-day tracking metric shows a marked decline in balances throughout September 2025, indicating that these large holders have been selling off substantial amounts during the past month, contributing to downward pressure on prices. The market charts indicated a “red zone” of heightened selling activity.
However, there are emerging signs of fatigue among sellers. While whale selling had been persistent, the pace has begun to slow as Bitcoin prices have risen. Early October data suggests a narrowing of the selling pressure, signaling a potential shift. Whales, previously net sellers for weeks, might be transitioning into a re-accumulation phase. If this trend continues, it could bolster the current short-term rally.
In a landscape marked by political gridlock, Bitcoin has demonstrated its capacity to achieve record highs, suggesting that decentralized assets can thrive even when traditional systems face challenges.
