Strong ETF inflows, easing regulations, and a weakening US dollar propel the world’s largest cryptocurrency to record levels.
Bitcoin, the world’s leading cryptocurrency by market capitalization, reached a historic milestone on Sunday, climbing above $125,000 for the first time. Trading at $125,245.57 as of 5:12 GMT, Bitcoin surged nearly 2.7% in value, surpassing its previous record of $124,480 set in mid-August.
The cryptocurrency’s ascent has been fueled by a combination of favorable regulatory developments under the Trump administration and robust demand from institutional investors. These factors have reinforced confidence in Bitcoin as a mainstream financial asset rather than a purely speculative instrument.
Friday marked Bitcoin’s eighth consecutive day of gains, further supported by strong inflows into Bitcoin exchange-traded funds (ETFs) and a rally in US equities. Analysts attribute this momentum to growing institutional participation and heightened market optimism.
Adding to Bitcoin’s bullish trajectory, the US dollar weakened, posting multi-week losses against major currencies. The retreat reflected investor concerns over a potential US government shutdown and delays in critical economic data releases, including payroll reports, which are key indicators of the country’s economic health.
Market observers note that the combination of macroeconomic uncertainty and increasing institutional adoption is positioning Bitcoin as an attractive hedge against traditional currency risks. With its record-breaking performance, Bitcoin is attracting renewed attention from both seasoned investors and newcomers alike, signaling a pivotal moment in the cryptocurrency’s ongoing evolution.
As Bitcoin continues to integrate into mainstream financial markets, its trajectory above $125,000 may mark the beginning of a new phase of institutional adoption and global relevance, reinforcing its role as a cornerstone of the digital asset ecosystem.