Bitcoin reached a significant milestone on Thursday, touching $120,000 for the first time since mid-August, coinciding with the second day of a U.S. government shutdown. This surge in price is attributed to a renewed interest from investors in Bitcoin exchange-traded funds (ETFs), which saw substantial inflows totaling $675.8 million on Wednesday—marking the highest level since September 12.
According to data from CoinGecko, Bitcoin peaked at $120,286, reflecting a 2% increase over a 24-hour period. The leading cryptocurrency has experienced nearly an 8% rise over the past week, gaining traction after a period of relative dormancy. This momentum aligns with a broader trend of investors seeking safe-haven assets; concurrently, gold prices have surged to new highs this week.
Market analysts have noted a shift in Bitcoin’s correlation with traditional financial assets. Historically regarded as a “risk-on” asset alongside stocks, Bitcoin has in recent weeks exhibited movements that are increasingly independent from U.S. equities, particularly technology stocks. Eric Balchunas, an ETF analyst at Bloomberg, emphasized that this decoupling makes Bitcoin more appealing to investors, especially in light of potential interest rate cuts by the Federal Reserve.
The anticipation of a rate cut in October has contributed to Bitcoin’s more attractive positioning. In low-interest rate environments, the digital currency has typically thrived, and historical data supports a pattern of strong performance in October—an occurrence so recurring that traders have coined the term “Uptober” to describe the month. Experts indicate that Bitcoin has seen a positive October growth in nine out of the past ten years, and this year seems to follow the same trajectory.
Other digital assets mirrored Bitcoin’s gains on Thursday, with Ethereum trading at $4,407, marking a 3% increase, and Solana nearing $226 after also rising 3% in the same period. As positive sentiment grows within the crypto community, traders have become increasingly optimistic about Bitcoin’s potential to reach new all-time highs. Current predictions suggest that Bitcoin has an 81% probability of hitting $125,000—a record for the cryptocurrency—exceeding the likelihood of it declining to $105,000. This odds assessment has surged by 15% in just the past 24 hours, signaling a bullish outlook among market participants.
