Bitcoin price surged to a fresh all-time high near $125,700 in Sunday Asian trading, eclipsing its prior August peak as macro jitters and ETF demand ignited a broad risk rally across digital assets. Bloomberg reported the move as part of a “debasement trade,” with investors seeking hedge assets while a US government shutdown underpins haven demand, lifting Bitcoin alongside equities. U.S.-listed spot Bitcoin ETFs recorded roughly $3.2 billion in net inflows last week, reinforcing the breakout as prices spiked through the early hours.
Drivers of the rally for Bitcoin Price
- Risk rally backdrop: Gains in U.S. equities and a broader risk-on tone have complemented crypto strength as investors reweight macro risks.
- Debasement trade: Market participants cite fears of currency debasement and fiscal stress as catalysts pushing flows into Bitcoin during the shutdown, reinforcing its hedge narrative.
- ETF inflows: U.S. spot Bitcoin ETFs saw an estimated $3.24 billion in weekly net inflows, one of the largest on record, underpinning sustained buy pressure.
- Seasonal ‘Uptober’: October’s historically strong seasonality for Bitcoin, popularly dubbed “Uptober,” has coincided with renewed momentum after a brief late-September pullback.
Bitcoin climbed as high as about $125,689, exceeding the prior record from mid-August and marking a milestone move that pushed crypto market sentiment decisively bullish. During the same window, price action accelerated quickly from the low $122,000s, with ETF-driven demand cited by industry trackers as a key accelerator of intraday swings. Yahoo Finance similarly highlighted the surge above $122,000 as ‘Uptober’ kicked off, putting the record back “in sight” ahead of the weekend run to new highs.
Market context and reaction
Commentary around the move centers on Bitcoin’s fixed supply and its role as a macro hedge during periods of fiscal uncertainty, with the “debasement trade” framing now widespread across desks. Social coverage from Bloomberg amplified that Bitcoin approached and then surpassed its record amid the shutdown-related risk rally narrative. Regional and global outlets echoed the new peak and its linkage to ETF inflows and shifting macro positioning.
What’s next on Bitcoin Price?
Traders are watching whether ETF inflows persist into the new week and if shutdown dynamics and broader risk appetite continue to support crypto beta. With October’s seasonal tailwinds in play and Bitcoin firmly through prior resistance, attention turns to the durability of flows and spillover into major altcoins as liquidity rotates.