Bitcoin continued its strong upward trend, hitting a new all-time high of $126,198 on October 7, exceeding its previous peak of $125,559 recorded just a day earlier. The recent surge is linked to continuous institutional inflows, as investors grow increasingly optimistic about potentially positive signals from the US Federal Reserve. The positive sentiment spread beyond just Bitcoin. Ethereum has successfully reclaimed the $4,700 level, while BNB has surged to a new all-time high, surpassing $1,200. Analysts attributed the broader rally to the ongoing US government shutdown, which has intensified concerns regarding economic stability. This, they claim, is fueling the so-called “debasement trade,” where investors turn to crypto assets as a protection against possible currency devaluation and fiscal uncertainty.
Even with the rally, signs of profit-taking have emerged at higher levels. At last check, Bitcoin was trading 0.35 percent higher at $124,261.27, with a 24-hour trading volume of approximately $69.14 billion. In the last 24 hours, the asset fluctuated between $123,340 and $126,198. Bitcoin’s market capitalisation has soared to $2.47 trillion, reinforcing its status as the top digital asset worldwide. The increase in the primary currency, was fueled by strong institutional investments coupled with a declining US dollar. “The ongoing US government shutdown has heightened the overall ‘debasement trade’, resulting in a surge in interest for both crypto and gold.” With institutional inflows hitting record levels, macro cues are gaining more importance. Edul Patel, highlighted that markets are keenly anticipating encouraging signals from the Fed. Patel indicates that a gentle approach in September’s FOMC minutes, along with weaker US jobless claims, might drive Bitcoin’s surge towards $129,000.
“Meanwhile, with the Dollar Index down 10 percent this year, any further weakness enhances the attractiveness of Bitcoin as a safeguard, drawing even retail investors into the rally,” stated Patel. Data shows a consistent pattern of accumulation, with exchange reserves continuing to decrease. From a technical perspective, Bitcoin is facing challenges around $127,000, with support levels clustered between $120,000 and $122,000. Momentum indicators such as the MACD are still displaying encouraging signals. “A significant breakout could pave the way for a rise toward $130,000 and further, while an inability to overcome resistance might lead to a short-term pullback,” noted analysts. The optimistic outlook has also spread to alternative cryptocurrencies. Ethereum, the second-largest cryptocurrency by market cap, was trading up 3.88 percent at $4,708—just 5 percent away from its peak of $4,953 reached on August 25. The cryptocurrency has varied between $4,511 and $4,736 in the last 24 hours.
In the altcoins space, Starknet, MYX Finance, Mantle, Stacks, Bittensor, Astar, PancakeSwap, Pudgy Penguins, Bonk, Chainlink, Pendle, dogwifhat, Lido DAO, Sonic, Arbitrum, Dogecoin, Hedera, Ondo, Quant, Algorand, Worldcoin, Polkadot, Kaspa, Sei, Celestia were among the notable gainers, with increases reaching as high as 23 percent. Conversely, Zcash, Hyperliquid, Pump.fun, Aptos, Litecoin, SPX6900, Curve DAO Token, Monero, ether.fi were the laggards, logging intraday losses of up to 7 percent on CoinMarketCap.