Cryptocurrency markets have seen a remarkable surge, particularly Bitcoin, which reached a record high of over $125,000. The increase was confirmed by CoinDesk data, showing a weekly gain of 11% for Bitcoin (BTC).
Key Drivers of the Surge
This bullish trend is, in part, fueled by the high demand for U.S.-listed spot exchange-traded funds (ETFs). These ETFs recorded a net inflow of $3.24 billion last week, marking the second-largest weekly inflow ever, according to SoSoValue.
Ripple Effect on Other Cryptocurrencies
Other cryptocurrencies have also benefited from Bitcoin’s momentum. Tokens such as XRP, Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) saw gains ranging from 1% to 3% during the early hours in Asia.
Influence of Political Uncertainty
The recent rally coincides with ongoing concerns regarding a U.S. government shutdown. Analysts believe this political atmosphere has created a safe-haven demand for Bitcoin. Jeff Dorman, Chief Investment Officer at Arca, remarked on this dynamic before the shutdown started. He pointed out that crises often drive investors towards Bitcoin as a reliable asset.
Macroeconomic Factors at Play
In addition to political factors, macroeconomic conditions are influencing the cryptocurrency market. Noelle Acheson, author of the “Crypto Is Macro Now” newsletter, highlighted several concerns. She mentioned potential increases in U.S. inflation and global borrowing, along with the impact of escalating geopolitical tensions.
- Market support is expected to grow with lower interest rates.
- Yield curve control may lead to increased liquidity.
- Such conditions typically favor cryptocurrencies like Bitcoin.
October: A Seasonally Bullish Month for Bitcoin
October is historically a strong month for Bitcoin, and analysts expect this trend to continue. BTC was trading at around $124,080 according to the latest CoinDesk data, promising potentially impressive gains ahead.
