Bitcoin surged past $125,000 over the weekend, setting a new record as investors shrugged off concerns about the ongoing U.S. government shutdown and embraced the so-called ‘Uptober’ rally. The milestone surpasses the previous high set on 14 August.
The rally was fueled by gains in U.S. stocks and renewed inflows into bitcoin-related ETFs. Investors are betting that the shutdown will weaken the dollar, prompting a ‘devaluation trade’ into assets like gold, stocks, and cryptocurrencies.
Joshua Lim, Co-Head of Markets at FalconX, said: ‘Right now, many assets—including stocks, gold, and even Pokémon cards—are hitting all-time highs. It’s no surprise that bitcoin is benefiting from the dollar devaluation narrative’.
Bitcoin, up more than 30% this year, has been buoyed by a friendlier regulatory climate under President Trump and growing adoption by companies following Michael Saylor’s bitcoin-hoarding strategy.
Spot bitcoin ETFs recorded $3.24 billion in net inflows for the week ending October 3 — the largest weekly inflow of 2025.
Global Head of Digital Asset Research at Standard Chartered, Geoff Kendrick said: ‘This government shutdown is significant’, predicting that bitcoin could climb higher in the coming weeks. He reaffirmed his year-end target of $200,000, saying the combination of ETF inflows and shutdown uncertainty “could further push up cryptocurrency prices’.
