Bitcoin hit an all-time high of $125,700 per Coinbase bitcoin price data displayed on TradingView, fueled by steady inflows into ETFs during the official US government shutdown.
Binance data shows that Ethereum dropped 0.44% to $4,563 compared to other cryptocurrencies. Recent price action also saw declines in XRP, BNB, Solana, Dogecoin and Cardano over the past hour.
Amid rising macroeconomic uncertainty, analysts say this strong rally reflects increasing investor interest in hedge assets like gold and Bitcoin.
Bitcoin has been steadily climbing for most of the past year after President Donald Trump fostered a more supportive legislative environment in Washington.
Public companies have driven demand by adopting the popular strategy of holding the original crypto asset, led by Michael Saylor’s institutional approach.
Bitcoin has been rising steadily for most of the past year since President Donald Trump brought a more accommodative legislative environment to Washington.
Public companies have increased demand by adopting the increasingly common corporate strategy of hoarding the original cryptocurrency, which Michael Saylor’s Strategy spearheads. Digital assets have increased significantly because of the playbook spreading to smaller rivals, such as Ether.
US stocks broke through the gloomy reading on business activity and the possibility of a protracted shutdown on Friday, hitting record highs amid yet another round of high-profile AI partnerships and deals. The dollar and Treasury securities fell. With US interest rates declining and inflation worries still present, central bank purchases were driving gold to a seventh weekly gain.
Digital assets have surged widely as this strategy spreads to smaller rivals like Ether. US stocks broke through negative business activity signals and fears of a prolonged shutdown, reaching record highs amid major AI partnerships and deals. The dollar and Treasury securities declined.
Dovish Environment supports Bitcoin
Central bank buying pushed gold to a seventh consecutive weekly gain with US interest rates falling and inflation remaining a concern.
“This time, the shutdown is important,” said Geoff Kendrick, global head of digital assets research at Standard Chartered Plc, who also predicted that Bitcoin would increase during this period.
He noted that during the last shutdown between 2018 and 2019, Bitcoin was “in a different place” with prices lower than those of traditional risk assets. Bitcoin’s historical outperformance in October, dubbed “Uptober,” adds to the bullish outlook. In nine of the last ten Octobers, the cryptocurrency has gained value.
According to Glassnode, the total Bitcoin held on centralized exchanges dropped to a six-year low of 2.83 million BTC as of Saturday. The last time there were fewer coins on exchanges was when the asset traded around $8,000 during the worst part of the bear market in early June 2019. CryptoQuant reports a slightly lower exchange reserve of 2.45 million BTC, a seven-year low. Both platforms indicate a sharp decline in exchange-held Bitcoin in recent weeks.
Glassnode reports that more than 114,000 Bitcoins, worth over $14 billion, have left exchanges over the past two weeks.
It signals that owners plan to hold long-term rather than sell. When Bitcoin is transferred from centralized exchanges to institutional wallets, self-custody, or treasury holdings. The “available supply” sitting on exchanges could be liquidated at any time and flood the market.
