Experts are Evaluating the Selling Pressure in Bitcoin

The price of Bitcoin reached a new record of $126,223 on Monday. This increase was influenced by a weakening dollar, the closure of the U.S. government, and significant inflows into Bitcoin exchange-traded funds (ETFs). Currently, Bitcoin is trading around $124,524, recording a 15% increase on a weekly basis.

This rise in Bitcoin is not only against the dollar but also reached historical peaks of €106,000 against the euro, 99,600 CHF against the Swiss franc, and against the Japanese yen. The new Prime Minister of Japan signaling a return to loose monetary policies has particularly increased global liquidity expectations. Additionally, with Bitcoin's leadership, Ethereum rose to $4,700 with a 4% increase, while BNB surpassed $1,240 with a 20% increase. Altcoins like Dogecoin, XRP, and Solana also achieved double-digit gains.

This week saw an inflow of $3.2 billion into Bitcoin ETFs, marking the second-highest level since November 2024, bringing total ETF purchases to over $60 billion. Bitget analyst Ryan Lee emphasized that these inflows reflect growing institutional investor confidence in Bitcoin, indicating that the market is beginning to mature. However, FxPro analyst Alex Kuptsikevich noted that long-term investors have been in a selling trend since July. Despite this, Bitcoin reserves on exchanges have fallen to 2.83 million BTC, the lowest level in the past six years.

Additionally, the ongoing U.S. government shutdown is directing investors towards safe-haven assets. Historically, during similar periods, both Bitcoin and gold have appreciated; for instance, during the shutdown in 2013, the price of Bitcoin doubled within a month. During this time, the declining dollar and bond yields are strengthening investors' expectations for a loose monetary policy.

Analysts indicate that the $125,000 level has become a critical support point for Bitcoin, and investors should monitor this level. Despite a sales pressure that has persisted for three months, it is noted that Bitcoin's price has matured and is presenting new opportunities for investors.