Bitcoin Soars to Record High, Surpassing $125,000 in October Rally
Bitcoin, the world’s largest cryptocurrency, has surged to a new all-time high of $125,689. This record-breaking rally, which saw an increase of over 12% in just one week, was driven by renewed institutional interest and the so-called “debasement trade”.
The significant rise was fueled by substantial inflows into Bitcoin exchange-traded funds, recording $3.24 billion in net inflows in the week ending October 3. Market participants have cited the ongoing U.S. government shutdown as a catalyst, leading investors to seek safe-haven assets amidst fiscal uncertainty.
Analysts are optimistic about Bitcoin’s future. Standard Chartered projects that Bitcoin could reach $200,000 by the end of the year, while Bernstein anticipates the cryptocurrency hitting between $150,000-$200,000 within the next 6-12 months.
Historically, October has been a strong month for Bitcoin, with increases seen in 10 of the past 12 years, according to Compass Point Research. This current momentum is a significant shift from September’s sideways trading, with analysts noting stronger institutional participation and macroeconomic drivers supporting this cycle compared to previous rallies.
Source: Bloomberg