New York, October 5 — Bitcoin shattered its previous record, soaring above $125,000 (₹10.52 million) for the first time on Sunday, capping a blistering five-day rally fueled by institutional demand, expectations of Federal Reserve rate cuts and seasonal optimism dubbed “Uptober.” The cryptocurrency’s price climbed as high as $126,094 (₹10.62 million) in early trading, marking a 15% gain since late September and pushing its market capitalization beyond $2.5 trillion (₹210.55 trillion), according to details received by The Chenab Times.
The breakthrough came after Bitcoin consolidated above $120,000 earlier in the week, with traders citing softer U.S. labor data—such as the ADP employment report—as a catalyst for bets on an October interest rate cut. Lower rates historically boost risk assets like Bitcoin, which has outperformed traditional markets amid global economic uncertainty. October has long been Bitcoin’s strongest month, averaging 22% gains since 2013, and this year’s start aligns with that trend, as noted by analysts at CryptoQuant and JPMorgan.
Trading volumes exploded to over $70 billion on spot markets during the surge, with combined spot and derivatives activity hitting 2025 highs of $9.72 trillion in August. Open interest in BTC futures reached a record $32.6 billion, signaling sustained bullish positioning. The rally erased summer stagnation, where Bitcoin traded below $110,000 for much of September, and positioned it for potential year-end targets as high as $200,000, per Standard Chartered forecasts.
Institutional inflows played a pivotal role. Spot Bitcoin ETFs saw $1.2 billion in net purchases last week, led by BlackRock’s iShares Bitcoin Trust, as investors rotated from gold amid debasement concerns. JPMorgan analysts highlighted Bitcoin’s undervaluation relative to gold, projecting upside to $165,000 if the “debasement trade” persists. On-chain metrics, including the Coinbase Premium Index, showed robust U.S. demand, with the 200-week moving average breaching $53,000—Bitcoin’s only consistently upward indicator.
Technical indicators reinforce the momentum. Bitcoin’s relative strength index (RSI) rose from neutral territory, avoiding overbought signals, while key support at $122,000 held firm. Analysts at CoinDesk pointed to $138,000 as the next resistance, with a decisive close above $126,000 potentially unlocking further gains. Volatility ticked up to 4-6% intraday swings, a hallmark of rapid ascents, but long-term holders remain unfazed, with realized price climbing above $54,000.
The surge coincides with macroeconomic tailwinds. The U.S. government’s partial shutdown, triggered by partisan gridlock over spending and healthcare subsidies, has amplified Bitcoin’s appeal as a hedge against fiat instability. President Trump’s threats of federal workforce layoffs and program cuts during the impasse have driven safe-haven flows into crypto, echoing 2018-2019 shutdown dynamics when Bitcoin gained 20%. Standard Chartered’s Geoffrey Kendrick noted that “prolonged market stress” favors digitally scarce assets like BTC.
Globally, regulatory clarity bolstered sentiment. The European Union’s MiCA framework full implementation in October has opened doors for institutional adoption, while U.S. SEC approvals for additional Bitcoin ETFs loom. In Asia, China’s easing of crypto mining restrictions contributed to volume spikes, with Gate exchange overtaking Bitget as the fourth-largest platform after a 98.9% surge to $746 billion in August.
Altcoins followed suit, with the CoinDesk 20 Index up 1.5% in 24 hours, led by Dogecoin’s 3% jump to $0.2591. Stellar (XLM) briefly hit $0.41 before retracing, buoyed by Bitcoin.com Wallet integration. However, Bitcoin’s dominance at 58% tempers altcoin euphoria, as capital rotates into the market leader.
Wall Street projections vary but skew optimistic. Changelly forecasts an average October price of $131,700, with a high of $120,178 and low of $108,658. Forbes analysts see $133,000 by year-end, while CryptoQuant’s Julio Moreno emphasizes U.S. premium metrics for sustained demand. Risks include Fed policy surprises or geopolitical flares, but historical “Uptober” patterns—coupled with ETF momentum—suggest resilience.
Bitcoin’s ascent from $73,800 in March 2024 to this milestone underscores a maturing asset class, with adoption surpassing 500 million users worldwide. As Q4 unfolds, eyes remain on whether this rally sustains into November’s traditional 46% average gains, potentially challenging $150,000 thresholds. For now, Bitcoin’s breach of $125,000 cements its status as digital gold in an era of fiscal flux.
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The Chenab Times News Desk
