Bitcoin has smashed through $125,000, setting a new all-time high in its 17-year history. The world’s largest cryptocurrency continues its rally as investors pour in, pushing prices to record levels.
Early Sunday trading in Asia saw Bitcoin touch $125,700, according to several exchanges. It later settled near $123,000 and remains in a strong uptrend. October has historically been a bullish month for Bitcoin, and this year’s “Uptober” trend is living up to its name.
In the past 24 hours, trading volumes exceeded $50 billion, data from CoinGecko shows. That surge in activity triggered a wave of short liquidations. About $100 million worth of positions were wiped out in one hour, and over $200 million during the day. Traders betting against Bitcoin were forced to buy back, accelerating the price rise.
Why Bitcoin Is Rising
Analysts say Bitcoin’s rally comes from a mix of strong economic tailwinds and renewed institutional demand. The ongoing U.S. government shutdown, which started on October 1, has reminded investors of Bitcoin’s appeal as a hedge against political and fiscal uncertainty.
“Instability in traditional markets has made digital assets more attractive,” said Fabian Dori, Chief Investment Officer at Sygnum Bank. “Bitcoin’s rise reflects a growing preference for decentralized stores of value.”
According to Dori, many long-term investors are accumulating Bitcoin, while speculative selling has eased. Historically, that pattern has often led to large upward moves.
Institutional Inflows Boost the Market
Large institutions are again showing interest. Spot Bitcoin ETFs just recorded their second-largest weekly inflows since launching earlier this year. This steady demand has improved market liquidity and confidence.
“Bitcoin is now a serious macro asset,” said Joe DiPasquale, CEO of BitBull Capital. “With government uncertainty rising, more people are turning to Bitcoin as a digital version of gold.”
At Standard Chartered Bank, analysts share that optimism. Geoff Kendrick, the bank’s global head of digital assets research, expects Bitcoin to hit $135,000 soon and possibly above $200,000 before the end of the year.
Strong October Momentum
Bitcoin’s climb continues a long-standing pattern. The coin has finished October in profit 10 out of the last 12 years. So far this month, it’s up more than 11% in just five days.
Last Friday, prices briefly paused near $124,000, as traders took profits near August’s previous record. But this time, demand stayed strong. Buyers quickly pushed Bitcoin past resistance, confirming a new breakout.
“The latest move shows real strength,” said a trader at a Singapore crypto desk. “Investors are rotating back into Bitcoin from altcoins, signaling trust in the top asset.”
Prediction Markets and Altcoin Outlook
Prediction markets also reflect growing optimism. On Myriad, a decentralized prediction platform, users correctly forecasted Bitcoin’s jump above $125,000 with odds above 90%. They now expect Bitcoin to outperform Ethereum through the rest of October.
Still, Ethereum has made modest gains, rising about 7.5% against Bitcoin in the past week. Some analysts believe this could mark the start of a rotation into select altcoins, though Bitcoin remains dominant for now.
Cautious Optimism Ahead
Despite the excitement, analysts warn that short-term pullbacks are likely. Traders may take profits, especially after such a rapid move. However, Bitcoin’s fundamentals remain strong: rising institutional participation, lower selling pressure, and continued demand as a hedge asset.
“After big breakouts, consolidation is normal,” said DiPasquale. “What matters is that Bitcoin still attracts new capital and investor confidence.”
As Bitcoin moves into the final quarter of 2025, it stands stronger than ever. Whether seen as a hedge, a tech innovation, or a speculative asset, it continues to shape the global financial story one new record at a time.
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