"Bitcoin jumped past $125,000 today, nearing its new all-time high as macroeconomic uncertainty and mounting political tensions in Washington pushed investors toward alternative assets. The world's largest cryptocurrency climbed more than 13% over the past week, rebounding from about $109,000 at the end of September to touch $125,750 over the weekend, according to Bitbio data. At the time of writing, Bitcoin is trading at $125,870."
"The move comes as people expect the Federal Reserve to cut interest rates later this month, which could further fuel a rally in non-yielding and risk-sensitive assets. The ongoing U.S. government shutdown is adding another tailwind to Bitcoin's climb. The budget standoff, now in its second week, has deepened concerns about fiscal dysfunction and the long-term credibility of the dollar. Analysts like Geoffrey Kendrick, head of digital assets at Standard Chartered, believe that Bitcoin's role as a safe haven is being amplified by Washington's gridlock."
"Kendrick believes that Bitcoin could reach $135,000 in the near term and potentially $200,000 by year's end if current conditions persist. The rally also aligns with Bitcoin's historical "Uptober" trend - a pattern of strong October gains that often set the tone for the final quarter. Since 2015, Bitcoin has averaged a 58% increase in the fourth quarter, the best performance of any three-month period."
Bitcoin rose above $125,000 after a more than 13% weekly gain, recovering from about $109,000 at the end of September to roughly $125,750 over the weekend and trading near $125,870. Expectations of Federal Reserve rate cuts later this month are seen as supportive for non-yielding and risk-sensitive assets. A second-week U.S. government shutdown has intensified concerns over fiscal dysfunction and the dollar's credibility, boosting safe-haven demand. Analysts project possible targets of $135,000 near term and $200,000 by year-end. Institutional inflows into spot Bitcoin ETFs and custodial platforms underpin the momentum. Gold also surged to $3,944.81 per ounce, up nearly 50% this year, supported by central bank buying, dollar weakness, and Fed easing expectations, prompting higher forecasts from UBS and Commerzbank for 2025-2026.
Read at Bitcoin Magazine
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