- Bitcoin reached a new all-time high above $125,000, gaining 11% over the past week.
- A surge in U.S.-listed spot bitcoin exchange-traded funds (ETFs) drove demand, with net inflows of $3.24 billion recorded.
- Other major cryptocurrencies, including XRP, ETH, SOL, and DOGE, also reported gains of 1% to 3% during Asian trading hours.
- Market participants cited increased “safe haven” demand for BTC due to ongoing U.S. government shutdown concerns.
- Experts said macroeconomic factors such as inflation expectations, currency worries, and rising global liquidity contributed to the rally.
Bitcoin reached a record price on Sunday, trading above $125,000 and extending its weekly gain to 11%. The price increase occurred as demand for U.S.-listed spot exchange-traded funds (ETFs) spiked and investors responded to political and economic uncertainty in the United States.
According to CoinDesk data, spot bitcoin ETFs attracted $3.24 billion in net inflows last week. This marked the second-largest weekly inflow on record, based on figures from data provider SoSoValue. Several other leading digital assets—including XRP, ETH, SOL, and DOGE—followed BTC and rose by 1% to 3% during Asian market hours.
Analysts pointed to ongoing political issues, specifically the U.S. government shutdown, as a driving force behind the move towards Bitcoin. Jeff Dorman, Chief Investment Officer at Arca, posted on X, “The only time I buy BTC is when society loses faith in governments and local banks. $BTC likely a good buy here ahead of yet another U.S. government shutdown.”
In addition to political risks, industry experts cited several macroeconomic factors. Noelle Acheson, author of the Crypto Is Macro Now newsletter, stated, “Beyond the escalating risk of new conflicts, US inflation is more likely to increase than decrease, increased borrowing around the world will intensify currency concerns, and what’s good for Gold is also good for BTC, especially since it is still woefully under-allocated.” She also noted that expected market support measures—such as lower interest rates, yield curve control, and “money printing”—are likely to increase global liquidity, benefiting assets like Bitcoin.
At the time of reporting, BTC traded close to $124,080, with market watchers expecting continued activity during the typically positive month of October.
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