Bitcoin hit a new record high today, reaching $125,449.77 at 4:55 a.m. UTC before settling back to around $122,000. Even with that drop, the cryptocurrency is still up more than 20% since December, when it first passed the $100,000 mark. Bitcoin’s value has been climbing for eight straight days, supported by strong U.S. stock performance and growing interest in Bitcoin exchange-traded funds (ETFs).
The last major surge happened in August, when Bitcoin reached $124,000 due to the U.S. government’s crypto-friendly stance and rising institutional investment. This latest jump, however, seems to be linked to the U.S. federal shutdown, as investors look for safer alternatives while Washington deals with political and economic uncertainty.
Many are now turning to Bitcoin ETFs, which let investors gain exposure to Bitcoin without buying it directly. These funds use regular money (fiat) to invest, but they must still purchase real Bitcoin when they receive new inflows — a trend that’s adding to the current demand.
Data from CoinMarketCap also shows that the supply of Bitcoin on exchanges is shrinking. Some large investors — often called “MegaWhales” — are moving their coins into long-term storage. For instance, one investor transferred 80,000 BTC from a dormant wallet in July, and another 54,000 BTC (worth about $6.6 billion) was withdrawn from Binance just yesterday.
This could push prices even higher as investors rush in, driven by FOMO (fear of missing out). Analysts say sentiment remains mostly positive, However, it can also move the other way, especially if the market thinks that it has been overbought.
Right now, Bitcoin’s market capitalization is approaching $2.5 trillion, putting it close to silver’s total value. While it’s still far behind gold’s massive $26 trillion market cap, the numbers show how Bitcoin is steadily transforming from a niche digital asset into a mainstream investment option.
