Bitcoin BTC$123,720.87 rose to $126,223 on Monday, marking yet every other record as the U.S. shutdown, softer buck, and surging ETF inflows converged to tighten supply and lengthen the rally.
As of writing, the cryptocurrency traded end to $124,000, constructing on a 15% weekly enjoy that has pulled majors higher all the draw thru the board.
In other locations, bitcoin has broken records in euro and Swiss franc phrases, crossing EUR 106,000 and CHF Ninety 9,600, as neatly in Japan. The Asian nation’s new prime minister is signaling a return to Abenomics-vogue easing, which performs straight into the market’s account of more straightforward liquidity stipulations ahead, as CoinDesk’s Omkar Godbole noted on Monday.
The broader market picked up a define, following bitcoin’s lead. Ether surged 4% to $4,700, its absolute best in three weeks, with merchants eyeing the $4,800–$5,000 vary if momentum holds.
BNB is silent the outlier, up extra than 20% in the previous week and setting recent records above $1,240, a switch that highlights rotation into ecosystem names when the substandard asset has a define. Dogecoin won 6% to $0.26, XRP ticked higher to nearly $3, and Solana has added over 12% in the previous seven days.
The breadth of this rally is mighty. The total crypto market capitalization rose to $4.27 trillion earlier than easing a tiny to $4.24 trillion. The sentiment index stands at 71 (greed), end to stages final considered in August but gathered looking euphoria. That leaves room for extension with out the indicators of a blow-off top.
ETF-led rally
BTC’s switch to record highs wasn’t a leverage-led spike. Weekly build ETF inflows crossed $3.2 billion, the absolute best since November 2024 and 2nd-supreme on record, pushing total allocations since January to extra than $60 billion, per data supply SoSoValue.
This ETF-pushed search data from is echoed by some analysts.
“Bitcoin’s climb above $124,000, fueled by $3.2 billion in build ETF inflows, underscores deepening institutional conviction and a maturing market account,” mentioned Ryan Lee, chief analyst at Bitget, in a display to CoinDesk.
Meanwhile, FxPro’s Alex Kuptsikevich warned that lengthy-time frame holders had been active sellers spherical these stages since July, that manner supply is waiting if search data from falters.
BTC’s commerce balances enjoy fallen to a six-365 days low of 2.83 million BTC, with 170,000 withdrawn in the previous month, signaling money transferring off exchanges and into longer-time frame storage. It’s that combination of trusty ETF procuring for and haunted supply that apparently underpins this switch.
Lingering political uncertainty
The U.S. authorities shutdown is entering its 2nd week, stalling key economic releases and establishing uncertainty about fiscal course as merchants gaze readability on development.
Linked shutdowns enjoy historically nudged capital in direction of laborious resources, equivalent to gold and bitcoin, reflecting concerns about political steadiness and its impact on fiat or fairness markets.
In 2013, BTC nearly doubled thru October as Washington gridlock persisted, while gold added extra than 3% all the draw thru the equal period. The 2018–19 closure was as soon as diverse — bitcoin slipped about 10% over five weeks while gold barely moved. The most up-to-date record excessive means that the market is following the 2013 sample.
On the equal time, the buck has softened, striking off a headwind for buck-denominated resources, and bond markets are starting up to price a extra cautious Federal Reserve.
Traders extra and extra ask that a combination of weaker data prints and fiscal paralysis will instructed policymakers to tread carefully on rates or no longer no longer as a lot as defend away from additional tightening.
For bitcoin, that reads as more straightforward liquidity stipulations ahead, with the extra or less dovish bias that has historically accompanied most important upside runs in the total market.
As a honest observer, $125,000 appears to be like to be a magnet and now a fight line.
