Bitcoin hit a historic peak on Sunday, breaching the $125,000 mark. The digital asset was trading up nearly 2.7% at $125,245.57 at 05:12 GMT, surpassing its previous all-time high of $124,480, set in mid-August. This latest surge is part of a trend that saw Bitcoin climb for an eighth consecutive session, signaling renewed confidence across the crypto landscape.
Experts are crediting the meteoric rise of Bitcoin to a potent combination of macroeconomic trends and shifting regulatory environments.
The world’s leading cryptocurrency by market capitalisation sees broader investor faith in digital assets as a hedge against global economic instability. The record price marks a significant recovery from previous market corrections, indicating a maturing ecosystem where market dips are increasingly viewed as buying opportunities by long-term holders.
Analysts are now closely watching resistance levels, with many predicting that the combination of institutional adoption and limited supply—particularly following the Bitcoin Halving events—could propel the price toward $150,000 before the year is out.
Bitcoin smashes records and here’s why
A significant factor driving the price upward has been the sustained, robust demand from institutional investors. The increasing popularity and accessibility of Bitcoin Exchange-Traded Funds (ETFs) in major markets have provided a regulated gateway for large financial entities to invest in the asset, pushing up demand and price.
The cryptocurrency market has been biased by an environment of “friendlier regulations,” particularly from the US government. Perceptions of reduced regulatory risk have encouraged both retail and institutional participation. Bitcoin’s recent gains have also tracked closely with upward movements in US equities, suggesting a return to risk-on sentiment among global investors.
The breaking of the $125,000 barrier confirms Bitcoin’s momentum as a mainstream asset class.
Market-wide recovery spotted
The continuous inflow into spot Bitcoin ETFs, coupled with positive movement in altcoins like Ethereum, suggests a massive market-wide recovery. However, experts caution that the crypto market is volatile and prices may experience sharp pullbacks as traders take profits from the explosive rally.