Bitcoin has reached an unprecedented price milestone, surging by 10% over the past week to surpass $125,000 for the first time in its history. This surge is being attributed to a phenomenon known as ‘Uptober’, during which the cryptocurrency market historically sees robust performance in October. The current rally is bolstered by a positive sentiment within the industry, driven by institutional adoption and more favorable regulatory environments.
As of now, Bitcoin’s price has doubled compared to the same period last year, leading several analysts to forecast further gains before the end of 2025. A notable aspect surrounding this price peak is the decline in Bitcoin holdings on centralized exchanges, which have plummeted to a six-year low. According to market intelligence firm Glassnode, approximately $15 billion in Bitcoin has exited exchanges like Binance and Coinbase in the last two weeks, shifting towards institutional funds, treasuries, or self-custody options. This trend typically indicates a long-term holding strategy, suggesting that investors are less likely to liquidate their assets in the near future.
Commenting on this significant market behavior, Nigel Green, chief executive of the financial advisory firm deVere Group, noted that Bitcoin’s status is shifting from a speculative asset to a legitimate macro instrument. He elaborates that institutional investors, corporate entities, and even governments are beginning to incorporate Bitcoin into their investment strategies and asset management frameworks. This broad adoption lends greater stability and depth to the market, moving away from prior cycles of speculation.
Green further mentioned that Bitcoin is increasingly being viewed as a safe-haven asset, integral to the global financial system. He anticipates that the cryptocurrency’s limited supply and escalating integration will position it as a vital hedge amidst growing fiscal pressures and currency depreciation. With sustained confidence in the market, he projects that Bitcoin could reach $150,000 by the end of this year.
Other cryptocurrencies have also experienced significant price increases, with Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) all rising by more than 10% over the past week. This collective rise has pushed the overall cryptocurrency market cap to an all-time high of $4.25 trillion, in stark contrast to gold, which is valued at approximately $26.6 trillion.
Speculation regarding future decisions by the US Federal Reserve has contributed to this bullish trend. Analysts believe that indications of potential interest rate cuts could drive investors toward riskier assets. Simon Peters, a crypto analyst at the trading platform eToro, highlighted that recent weaker-than-expected employment data has led investors to increase their bets on further interest rate cuts during the Federal Reserve’s upcoming meeting on October 29. Given the current ‘risk-on’ market sentiment, there is optimism that Bitcoin, Ethereum, and other major cryptocurrencies could continue their rally and potentially reach new all-time highs by the end of the month.
