Bitcoin Approaches $124K Peak as U.S. Shutdown Fuels Crypto Surge

Friday, 03/10/2025 | 20:20 GMT by Jared Kirui

Institutional demand, particularly through Bitcoin ETFs, is also driving this momentum, with strong inflows sustaining upward price movement.

Price is up 12% in the weekly chart, currently trading at $122,670.

Bitcoin has surged close to a new record high, climbing within 1% of its all-time price as the U.S. government shutdown extends into its third day.

This unexpected political uncertainty has coincided with a broader rally across cryptocurrencies, signaling renewed investor confidence and a potential turning point after a quiet summer.

Digital assets meet tradfi in London at the fmls25

The cryptocurrency rose more than 1.2% in the past 24 hours, reaching approximately $122,400 and briefly touching $123,850, according to CoinMarketCap. This puts it just shy of the $124,290 record set in August.

Meanwhile, the total crypto market capitalization climbed over 3% to surpass $4.2 trillion amid high bullish sentiment on social channels. Since the shutdown began on Wednesday, Bitcoin ’s value has increased by over 8%.

Bitcoin daily price chart, Source: CoinMarketCap

Government Shutdown Spurs New Bitcoin Interest

The shutdown highlighted the stark difference between it and the 2018 shutdown during the Trump administration, when Bitcoin remained largely unaffected.

October has been strong for Bitcoin historically, often called “Uptober” by traders due to gains in nine of the past ten years. A rise toward $135,000 would mark roughly a 9% increase from current prices.

The recent Bitcoin surge comes amid growing institutional interest and shifting macroeconomic conditions. After trading below $110,000 just last weekend, Bitcoin has climbed almost 15% over five days.

“It seems this momentum is being driven by institutional demand through Bitcoin ETFs, with sustained positive inflows throughout early October creating strong upward momentum toward ~$124k. The trend shows ETF inflows that may be driving the current rally toward all-time highs,” opined Jake Kennis, Senior Research Analyst at Nansen.

Institutional Demand and Macro Factors Drive Rally

Its quick recovery contrasts with July to September’s relatively muted price action, during which Bitcoin lagged behind stocks and gold. These factors have pushed investors away from the U.S. dollar toward hard assets like Bitcoin, which benefit from increased institutional adoption.

Meanwhile, according to Bitfinex analysts, “technical levels indicate supply zones between $120K and $124K, while on-chain data highlights strong holder absorption around $111K to $113K, creating a solid base. Also, market sentiment seems constructive without appearing excessively greedy. If inflows remain consistent and macro data does not deliver any upside surprises, the path towards more new all-time highs in Q4 appears well supported.”

The combination of deeper economic shifts and broader investor pools provides a stronger foundation than past speculative runs. As Bitcoin approaches new heights amid political turbulence and changing global dynamics, the coming weeks will test whether this renewed enthusiasm can hold or if profit-taking will again disrupt the rally.

Bitcoin has surged close to a new record high, climbing within 1% of its all-time price as the U.S. government shutdown extends into its third day.

This unexpected political uncertainty has coincided with a broader rally across cryptocurrencies, signaling renewed investor confidence and a potential turning point after a quiet summer.

Digital assets meet tradfi in London at the fmls25

Government Shutdown Spurs New Bitcoin Interest

The shutdown highlighted the stark difference between it and the 2018 shutdown during the Trump administration, when Bitcoin remained largely unaffected.