Bitcoin has once again rewritten history. On October 5, 2025, the world’s largest cryptocurrency crossed the $1,25,000 mark, setting a new record amid rising investor demand during the ongoing US government shutdown. According to Bloomberg, Bitcoin touched $1,25,689, surpassing its previous peak of $1,24,500 from August 2025.
At 1:10 pm on October 5, data from CoinMarketCap showed Bitcoin trading near $1,24,710, with a market capitalization of $2.48 trillion.
Investors Turn to Bitcoin Amid US Shutdown
The current rally comes as investors seek safe havens amid economic uncertainty in the United States. The government shutdown has prompted a capital shift away from traditional assets and toward cryptocurrencies.
Geoff Kendrick, Global Head of Digital Assets Research at Standard Chartered, noted that “the shutdown matters,” highlighting that the political and economic instability in Washington has amplified Bitcoin’s role as a hedge asset.
Kendrick also attributed part of the rally to a pro-crypto stance under Donald Trump’s administration, which has fostered growing confidence among digital asset investors.
ETF Inflows and Market Sentiment Fuel Momentum
Beyond macroeconomic factors, institutional participation is playing a major role in Bitcoin’s latest ascent. According to CoinMarketCap, exchange-traded fund (ETF) inflows reached $3.24 billion last week alone, with consistent buying pressure reducing available supply.
This sustained demand from ETFs has strengthened Bitcoin’s position as “digital gold,” with its market cap now rivaling that of silver. Analysts suggest that ETF-driven inflows have created upward momentum that could push prices toward $1,35,000, though some caution that such levels may trigger short-term corrections.
Declining Trade Volumes Indicate Long-Term Holding
Interestingly, despite soaring prices, Bitcoin trade volumes fell nearly 29% from the previous day to $57.94 billion, signaling that most investors are holding rather than selling. This long-term holding behavior supports the narrative that Bitcoin is maturing as a stable asset class rather than a speculative vehicle.
Support from Broader Financial Markets
Stock markets have also shown resilience, indirectly aiding Bitcoin’s upward trajectory. Optimism surrounding potential Federal Reserve rate cuts in October has added to the bullish sentiment. Lower interest rates typically favor high-risk assets like cryptocurrencies, as liquidity increases and borrowing costs decline.
Ethereum, Tether, Binance, and XRP Also Rise
Bitcoin’s rally has lifted the broader crypto market. Key altcoins followed the upward trend:
- Ethereum (ETH): Up 0.49% to $4,584.19, market cap $553.9 billion
- XRP: Gained 0.61% to $3.05, market cap $182.69 billion
- Tether (USDT): Slight rise of 0.01% to $1, market cap $177.0 billion
- Binance Coin (BNB): Up 0.43% to $1,175.34, market cap $163.56 billion
The synchronized growth across leading tokens underscores renewed investor enthusiasm for the crypto sector.