By Orlin Milinov
Bitcoin surged above $125,000 over the weekend, marking a new all-time high as investors brushed aside concerns over the ongoing U.S. government shutdown and embraced the start of what traders call the “Uptober” rally.
The fresh milestone surpasses the previous record set on August 14, reinforcing growing confidence among investors in the digital asset market despite political and economic uncertainty in the United States.
According to market analysts, the latest rally has been supported by gains in U.S. equities and strong inflows into bitcoin exchange-traded funds (ETFs). Many traders believe the budget standoff in Washington could weaken the U.S. dollar, driving investors toward alternative assets such as gold, stocks, and cryptocurrencies.
Joshua Lim, Co-Head of Markets at FalconX, said the market’s reaction reflects a broader global trend.
“Right now, many assets—including stocks, gold, and even collectibles—are hitting record highs. It’s no surprise that bitcoin is also benefiting from the weaker dollar narrative,” he said.
Bitcoin has gained more than 30 percent since the start of the year, supported by what investors see as a more favourable regulatory environment under President Trump’s administration and continued adoption by major corporations inspired by long-term holders in the market.
Data from the crypto market shows that spot bitcoin ETFs recorded $3.24 billion in net inflows for the week ending October 3, the largest weekly inflow so far in 2025.
Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered, described the government shutdown as a key catalyst for recent price action.
“This shutdown is significant,” he said, predicting that bitcoin could rise even further in the coming weeks.
Kendrick reaffirmed his year-end price target of $200,000, noting that continued ETF inflows and growing investor uncertainty could “further lift cryptocurrency prices.”
