Bitcoin (BTC) experienced a remarkable surge during the Asian trading session on Sunday, climbing from $122,000 to $124,289 within just a matter of minutes. This increase nearly matched its previous record high of $124,429, which was achieved in August.
The upswing in Bitcoin’s price can be attributed to a significant influx of investment in U.S.-listed spot exchange-traded funds (ETFs), with a striking total of $3.24 billion in net inflows recorded last week. This figure ranks as the second-highest weekly inflow ever, according to the data provider SoSoValue.
In the wake of Bitcoin’s strong performance, several other cryptocurrencies also saw gains during the same trading hours. Tokens such as XRP, Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) recorded increases ranging from 1% to 3% as the momentum carried through the market.
This rally occurs amid ongoing U.S. government shutdown discussions, which analysts indicate have contributed to a rising safe-haven demand for Bitcoin. Jeff Dorman, Chief Investment Officer at Arca, commented on the connection between political instability and cryptocurrency investments, stating, “The only time I buy BTC is when society loses faith in governments and local banks. $BTC likely a good buy here ahead of yet another U.S. government shutdown.”
In addition to political factors, various macroeconomic trends are influencing this Bitcoin rally. Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, remarked on the compounding issues present in the broader economy, noting that “beyond the escalating risk of new conflicts, U.S. inflation is more likely to increase than decrease.” She continued, indicating that greater global borrowing could further heighten concerns surrounding currency stability, which historically benefits assets like gold and Bitcoin.
Moreover, Acheson emphasized that incoming market support from potential lower interest rates and expansive monetary policies will likely enhance global liquidity. This influx of liquidity is expected to trickle down to riskier cornerstones of institutional portfolios, which often includes cryptocurrencies.
The current bullish trajectory for Bitcoin signals a promising October for cryptocurrency enthusiasts, with the asset trading around $124,080 as of the latest data from CoinDesk. Given its historical performance patterns and the present economic landscape, many in the market anticipate significant upward movement in the coming weeks.
As Bitcoin continues to assert itself amidst political and economic uncertainties, investors remain watchful of developments that could further influence market dynamics.
