Hassan Maishera
TL;DR
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BTC raced to a new all-time high on Sunday, adding 11% to its value in seven days to hit $125,559.
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The rally comes amid massive net inflows into spot Bitcoin ETFs.
Bitcoin Sets a New All-time High of $125k
Bitcoin, the leading cryptocurrency by market cap, is finally back in green after weeks of choppy price action. The coin added 11% to its value over the last seven days and has now set a new all-time high.
BTC rallied to $125,559 during the early hours of Sunday, topping its previous all-time high price of $124k. However, it has slightly retraced and is now trading around $123,600 per coin.
The rally comes amid renewed institutional demand for Bitcoin-related products. Bitcoin spot exchange-traded funds (ETFs) in the United States registered a net inflow of $3.24 billion in the week ended Oct. 3. The increased demand comes as investors look to Bitcoin as a safe haven in the ongoing shutdown of the U.S. government.
Noelle Acheson, author of the Crypto Is Macro Now newsletter, stated that.
"Beyond the escalating risk of new conflicts, US inflation is more likely to increase than decrease, increased borrowing around the world will intensify currency concerns, and what’s good for gold is also good for BTC, especially since it is still woefully under-allocated. Plus, the incoming rush of market support – lower rates, yield curve control, and lots and lots of “money printing” – will boost global liquidity, which will seep into the riskier corners of institutional portfolios."
Analysts are predicting that Bitcoin could hit the $130k mark before the end of the month. Market participants expect the Federal Reserve to cut the interest rate in its upcoming FOMC meeting later this month. The Fed reduced its interest rate benchmark last month, allowing Bitcoin to reclaim $120k after weeks of choppy price action.
