Bitcoin hit a historic high above $125,000 as investors flocked to the safe haven.
Increasing institutional demand and global economic uncertainty have led to a new milestone for cryptocurrencies.
Bitcoin broke an all-time high, surpassing $125,000 for the first time since its creation 17 years ago. This milestone was achieved during Asian trading hours, with nearly $50 billion in trading volume recorded in the last 24 hours, according to CoinGecko data.
Bitcoin surpasses the $125,000 milestone amid institutional buying and market volatility.
The surge sparked a wave of liquidations across the market, with CoinGlass reporting that about $100 million of short positions were liquidated in one hour and more than $200 million over the past day.
Analysts attribute the rally to a combination of macroeconomic conditions and increased institutional participation. Joe DiPasquale, CEO of BitBull Capital, said the ongoing U.S. government shutdown has led investors to look at Bitcoin as a hedge against uncertainty and a potential store of value.
Geoff Kendrick, Standard Chartered’s global head of digital assets, said in a note to investors that he expects Bitcoin to continue rising, predicting a near-term target of $135,000 and suggesting it could exceed $200,000 by the end of the year.
The move follows a brief slowdown earlier in the week when traders took profits near the previous record of $124,128. However, the current rally shows continued confidence in Bitcoin’s long-term strength.
Users of Myriad, a prediction market developed by Decrypt’s parent company Dastan, predicted a new record of more than 90% chance for Bitcoin to reach $125,000 by Friday. Current forecasts on the platform indicate that Bitcoin will outperform Ethereum throughout October.
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