Bitcoin soars to record high above $125,000 amid ETF inflows and flight to hedge assets
Story by Martha Gwary
Bitcoin surged to a new all-time high of $125,700, according to Coinbase data on TradingView, as persistent inflows into exchange-traded funds (ETFs) coincided with the ongoing US government shutdown.
While Bitcoin extended its remarkable rally, other leading cryptocurrencies showed weakness. Binance data revealed that Ethereum slipped by 0.44% to $4,563, while XRP, BNB, Solana, Dogecoin, and Cardano also recorded losses within the past hour.
Analysts attribute Bitcoin’s strong momentum to rising macroeconomic uncertainty, which is driving investors towards hedge assets such as gold and the world’s largest cryptocurrency. The asset’s steady rise over the past year has been supported by a more favourable legislative climate under President Donald Trump, which has fuelled broader institutional adoption.
Public companies are increasingly adopting a treasury strategy centred on Bitcoin holdings — a trend popularised by Michael Saylor — which has in turn boosted demand. This approach has since extended to other digital assets, notably Ether.
Equity markets also reflected investor optimism, with US stocks climbing to record highs despite weak business activity data and fears of a prolonged shutdown. The rally was bolstered by a new wave of high-profile AI deals, while the US dollar and Treasury yields declined. Falling interest rates and lingering inflation concerns helped propel gold to its seventh consecutive weekly gain.
READ ALSO: Bitcoin hits $100,000 mark as Trump champions pro-crypto agenda
“The shutdown is significant this time,” said Geoff Kendrick, global head of digital assets research at Standard Chartered, who predicts further Bitcoin gains. He noted that Bitcoin is now outperforming traditional risk assets, unlike during the 2018–2019 shutdown. Seasonal trends also point to further upside, with Bitcoin historically gaining value in nine of the last ten Octobers — a pattern traders call “Uptober.”
On-chain data further supports the bullish sentiment. Glassnode reported that Bitcoin held on centralised exchanges dropped to a six-year low of 2.83 million BTC as of Saturday, compared to 2.45 million BTC — a seven-year low — recorded by CryptoQuant. Over the past two weeks, more than 114,000 BTC, worth over $14 billion, have been withdrawn from exchanges.
This significant outflow suggests that holders are opting for long-term storage — moving their assets into institutional wallets, self-custody solutions, or corporate treasuries — rather than preparing to sell. A shrinking “available supply” on exchanges reduces the likelihood of a sudden market sell-off, further strengthening Bitcoin’s bullish outlook.
Follow the Neptune Prime channel on WhatsApp:
Do you have breaking news, interview request, opinion, suggestion, or want your event covered? Email us at neptuneprime2233@gmail.com
