LONDON: Bitcoin, the world’s largest cryptocurrency by market value, surged to a new all-time high on Sunday, crossing the $125,000 mark for the first time in its 17-year history, amid strong institutional demand and a weakening US dollar.
At 0512 GMT, Bitcoin was up nearly 2.7% at $125,245.57, according to data from CoinGecko.
The digital asset’s previous record of $124,480 was set in mid-August, driven by favourable regulatory signals from US President Donald Trump’s administration and robust inflows into Bitcoin exchange-traded funds (ETFs).
Institutional demand and market momentum
Trading activity remained high, with nearly $50 billion in Bitcoin transactions recorded over the past 24 hours.
According to CoinGlass, almost $100 million in short positions were liquidated in just one hour, while more than $200 million were wiped out over the day as bullish traders pushed prices higher.
“The broader setup remains bullish, with a prolonged government shutdown likely to continue driving interest in hard assets and supporting demand for Bitcoin as an alternative store of value,” said Joe DiPasquale, CEO of crypto asset manager BitBull Capital, in comments to Decrypt.
Favourable policy and market conditions
Bitcoin’s rally comes as the US dollar weakened on Friday, retreating to multi-week lows against major currencies.
Uncertainty surrounding a potential US government shutdown and delayed economic data releases, including payroll figures, added to pressure on the currency.
Analysts say the Trump administration’s friendlier stance towards digital assets has boosted confidence across the crypto market. Trump and his family have been vocal promoters of cryptocurrencies, and the administration’s policy shift has reversed years of regulatory caution under former president Joe Biden.
In July, the US House of Representatives passed three landmark cryptocurrency bills, helping to establish a more supportive framework for digital asset innovation.
“With many assets including equities, gold and even collectibles like Pokémon cards hitting all-time highs, it’s no surprise Bitcoin is benefiting from the dollar debasement narrative,” Joshua Lim, co-head of markets at crypto brokerage FalconX, told Bloomberg News.
Analysts see further gains
Standard Chartered analysts remain optimistic about Bitcoin’s trajectory. Geoff Kendrick, the bank’s global head of digital assets, said in an investor note on Friday that he expects Bitcoin to reach at least $135,000 in the near term and potentially top $200,000 before the end of the year.
Users on the Myriad prediction market, developed by Decrypt’s parent company Dastan, had accurately forecast Bitcoin’s latest rally, placing odds above 90% that the cryptocurrency would breach $125,000 by this weekend.
Traders on the platform now expect Bitcoin to outperform Ethereum, the world’s second-largest cryptocurrency, through October.
Safe-haven appeal
Bitcoin’s latest milestone reflects growing investor interest in alternative assets amid macroeconomic uncertainty.
Gains in US equities and concerns over fiscal instability have prompted investors to diversify into digital assets, reinforcing Bitcoin’s status as a potential hedge against currency depreciation and inflation.
