The world’s largest cryptocurrency, Bitcoin, has once again broken records by surging past $125,700 to mark a new all-time high as global investors turn to digital assets amid market uncertainty. Moreover, the most recent rally comes after the renewed inflows into the Bitcoin exchange-traded funds and a favorable US economy backdrop. In addition, the rising confidence in cryptocurrencies as a hedge against inflation is another significant reason behind this surge.
US Shutdown Fuels “Debasement Trade” and Bitcoin Rally
This cryptocurrency climbed above $125,689 in Asian trading on Sunday. Hence, it surpasses its previous peak of $124,514 from August. However, analysts attribute this change to the ongoing US government shutdown, which has triggered what experts are calling the “debasement trade”. It is a shift towards assets like Bitcoin, gold, and equities that benefit from a weakening dollar.
Joshua Lim, co-head of markets at FalconX, said, “With equities, gold, and even collectibles hitting record highs, it is no surprise Bitcoin is growing under the dollar debasement narrative.”
Traditionally, October was dubbed “Uptober in crypto circles. Now, it has been a bullish month for Bitcoin due to gains in nine of the past ten years.
ETF Inflows and Institutional Interest Power the Surge
According to Coinbase data, Bitcoin’s price has risen 34% year-to-date and over 100% year-on-year due to the record inflows into ETFs such as BlackRock’s IBIT BTC ETF. Recently, it crossed $90 billion in assets, which is the fastest climb ever recorded for a US ETF.
Major banks, including JPMorgan and Citi, predict even stronger growth in the upcoming quarter. JPMorgan set a price target of $165,000 by year-end. On the other hand, Citi expects Bitcoin to hit $133,000 due to sustained ETF demand and institutional adoption.
Analysts Eye $200K as Long-Term Target
Standard Chartered and VanEck are one of the most bullish institutions. Moreover, they forecast that the Bitcoin could reach $180,000 to $200,000 in this year, i.e, 2025. In addition, they highlight strong ETF inflows, weakening US interest rates, and increased corporate accumulation as major catalysts behind this growth.
Investors in the United Arab Emirates (UAE) and other nations of the world are showing growing interest in cryptocurrency ETFs and blockchain projects. So, the continued ascent of Bitcoin signals a broader institutional hold of the digital assets across the Middle East.
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