Bitcoin Approaches $126,000 and Achieves New Highs

SadaNews - Bitcoin has recorded a new all-time high today, Monday, as the world's largest cryptocurrency by market capitalization continues to benefit from strong demand from investors.

The increase since the beginning of the year has been supported by institutional investments, more lenient policies during the presidency of Donald Trump, and the increasing connection of Bitcoin to the global financial systems.

Trump and his family have also worked to promote cryptocurrencies and entered into several projects related to them, which contributed to increasing his wealth.

Trump's support for digital assets represents a retreat from years of skepticism from the U.S. government toward the cryptocurrency sector during his predecessor Joe Biden's era, while the U.S. House of Representatives passed three historic cryptocurrency-related bills last July.

Bitcoin rose to $125,835.92 after surpassing $125,000 for the first time yesterday, Sunday. In its latest transactions, it recorded a gain of 2.02% at $125,253.63, on track for gains for the second consecutive session.

Bitcoin has increased by more than 33% this year.

Coinciding with the Government Shutdown

The rise in Bitcoin coincided with the U.S. government shutdown that began on October 1, which contributed to the increased demand for assets seen as safe havens.

The shutdown led to the disruption of the release of key economic data, and gold reached a record high of over $3,900 an ounce, extending a rise that has lasted several months.

Traders noted that the increasing demand in the spot market has been the biggest driver recently for Bitcoin's rise, with investors pouring $3.2 billion into a group of 12 U.S. Bitcoin exchange-traded funds last week, marking the second-largest amount since their launch in 2024.

Research analyst at Kaiko, Adam McCarthy, stated, "If things go well regarding macro updates and data releases, we might see a prolonged rise for Bitcoin until the end of the year."

During trading on Monday, Ether, the second-largest cryptocurrency, rose nearly 5% to reach $4,700.