Bitcoin Reaches All-Time High, Analysts Commented

In recent weeks, Bitcoin (BTC) has reached an all-time high of $125,000 following a massive spot exchange-traded fund (ETF) inflow of $3.2 billion. As the leading cryptocurrency, Bitcoin showed an 11% weekly increase while reaching this historic level. One of the main reasons behind this strong rally is the $3.24 billion net inflow into U.S.-based spot Bitcoin exchange-traded funds. Data provider SoSoValue points out that this amount marks the second-largest weekly inflow in history.

On the other hand, another significant reason for Bitcoin's rise is the ongoing government shutdown in the U.S. and the resulting increase in the search for safe-haven assets. Jeff Dorman, Chief Investment Officer at Arca, stated before the shutdown, "When society loses trust in governments and banks, I buy Bitcoin. Right now, BTC offers a good buying opportunity.”

Developments are not limited to political uncertainties. Macro analyst Noelle Acheson emphasizes that there are other factors behind the current rally, noting, "As new conflict risks increase, U.S. inflation is on the rise again instead of falling. This undermines confidence in currencies. What is good for gold is also good for Bitcoin." Acheson also pointed out that due to central banks' interest rate cuts and policies to suppress bond yields, the growing expansion of money supply has increased global liquidity, providing more capital flows into risky assets.

Analysts highlight that October has historically been a strong period for Bitcoin and believe that this rally might continue in the upcoming weeks. At the time of writing, Bitcoin was trading at around $124,000. At this point, it is emphasized that investors should closely monitor developments in the markets.