Bitcoin has reached a new all-time high this week, propelled by a significant rally in risk assets amidst the ongoing U.S. government shutdown. This surge has sparked optimism among financial institutions and traders, with many expecting even greater heights for the cryptocurrency.
Standard Chartered has taken a particularly bullish stance. Geoff Kendrick, the bank’s head of digital assets research, informed clients that Bitcoin could soar to $135,000 in the near future, attributing this potential to unprecedented inflows into exchange-traded funds (ETFs). Kendrick emphasized the current shutdown’s impact, contrasting it with the last government shutdown in late 2018 and early 2019, during which Bitcoin’s performance was relatively stagnant. He noted that Bitcoin is now more closely correlated with traditional risk assets, suggesting a shift in investor behavior.
Over the weekend, Bitcoin traded above $125,000, surpassing its previous record of $124,480 set in mid-August. This rise has been attributed to more favorable regulatory conditions under the Trump administration and increasing institutional demand. Anthony Pompliano, founder of Professional Capital Management, expressed excitement about the cryptocurrency’s trajectory, remarking that Bitcoin serves as a benchmark—”the hurdle rate” for investors. He believes the coming weeks will be particularly rewarding for Bitcoin holders.
Despite the impressive rally, Bitcoin has gained approximately 13% since late September, according to financial services firm Trade Nation. Analyst David Morrison remarked on the orderly nature of the current market, indicating a sense of confidence rather than rampant speculation. The latest surge coincides with a weakening U.S. dollar, as uncertainty stemming from Trump’s tariffs has led some investors to reconsider their positions.
Gold has also experienced remarkable gains, briefly surpassing $4,000 an ounce for the first time in history. However, not all financial institutions share the same level of enthusiasm regarding Bitcoin’s near-term prospects. Citigroup recently revised its year-end Bitcoin target downward to $133,000 from $135,000, citing expectations of a resurgence in the dollar’s strength. Nevertheless, Citi still anticipates further upward movement for Bitcoin by year-end, while suggesting that investor flows might increasingly gravitate towards Ethereum, the second-largest cryptocurrency.
In the derivatives market, Bitcoin options traders are predominantly focusing their bets around the $140,000 strike for contracts set to expire later this year. Open interest in futures and perpetual contracts has surged to record levels, reflecting heightened investor activity and interest, according to Bloomberg data from Deribit and Amberdata.
In related news, plans to integrate cryptocurrency into ticketing for the 2026 FIFA World Cup are under early examination by gambling regulators in Switzerland. Officials are assessing whether FIFA’s initiative to sell tradable digital tokens that can be exchanged for match tickets falls under the country’s gambling laws. The tokens have already generated millions of dollars for football’s global governing body, and Switzerland’s gambling regulator, Gespa, is currently gathering information to inform their decision on potential regulatory actions.
