Bitcoin Surpasses $124,000, Approaching Historic High

The Rise of Bitcoin Continues

Bitcoin (BTC) rose from $122,000 to $124,289 during the Asian session on Sunday. During this process, it remained just below the record level of $124,429 reached in August.

This breakout above $124,000 came after a significant demand for spot exchange-traded funds (ETFs) traded on US exchanges. These funds recorded a total net influx of $3.24 billion during the week of October 3rd. This is considered the second-largest weekly inflow on record. According to data provider SoSoValue, this situation also reflected on other cryptocurrencies. Digital assets like XRP, Ethereum, Solana, and Dogecoin gained between 1% and 3% under Bitcoin's leadership.

Haven Demand is Rising

This rise in Bitcoin occurred against the backdrop of the ongoing US government shutdown. Analysts indicate that this situation is increasing the demand for Bitcoin as a safe haven. Jeff Dorman, Chief Investment Officer at Arca, stated before the shutdown, "When society loses faith in governments and local banks, there is no choice but to buy Bitcoin. BTC presents a good buying opportunity ahead of a potential US government shutdown."

Beyond political uncertainty, experts are also highlighting significant macroeconomic factors supporting Bitcoin's rise. Noelle Acheson, author of the Crypto Is Macro Now newsletter, expressed, "In addition to the increasing risk of new conflicts, US inflation is more likely to rise than fall. The rising indebtedness around the world will heighten currency concerns. What is good for gold is also good for Bitcoin because it is still under-distributed."

Acheson also added, "The increase in market supports – low interest rates, yield curve control, and lots of 'money printing' – will boost global liquidity, and this liquidity will seep into risky areas in institutional portfolios." In short, BTC is preparing to achieve impressive gains in October, which is seasonally favorable.

At the time of writing, the cryptocurrency was trading at approximately $124,080, according to CoinDesk data.