Bitcoin has set a new all-time high on Monday, surging to $126,200, which has fueled bets on more upside. In early Wednesday, it is trading below $123k.
The milestone surpassed Sunday’s peak of $125,250, pushing Bitcoin mining stocks sharply higher as traders bet on more gains before year-end.
BTC rally comes amid the ongoing political gridlock in Washington, where many U.S. federal employees remain furloughed due to the government shutdown. Lawmakers have yet to pass a stopgap funding measure, leaving agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) partially inactive.
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Prediction markets on platforms like Kalshi and Polymarket suggest that traders expect the shutdown to persist for some time, though not for a historically long duration.
According to Bloomberg, Bitcoin’s recent upward momentum was accompanied by a surge in call option interest targeting $140,000. Jean-David Péquignot, Chief Commercial Officer at Deribit by Coinbase, described the move as the result of “a perfect storm of macroeconomic tailwinds.” He cited factors including the U.S. government shutdown, record spot ETF inflows, and declining exchange reserves as key drivers.
“ETF demand is squeezing supply, while seasonal optimism and geopolitical agitation position BTC as a prime hedge against inflation,” Péquignot explained, noting that technical indicators point to potential price targets between $128,000 and $130,000 by mid-October.
Supporting BTC momentum, U.S. spot Bitcoin ETFs recorded $3.2 billion in inflows last week their second-highest total since debuting in early 2024. Data from SoSoValue showed that on October 6 alone, Bitcoin ETFs attracted $1.19 billion in new investments.
BlackRock’s iShares Bitcoin Trust (IBIT) led the pack with $969 million in inflows, followed by Fidelity’s FBTC with $112 million. Bitwise’s BITB and Grayscale’s GBTC also saw modest inflows of $60.12 million and $30.55 million, respectively.
On-chain analytics further revealed that short-term Bitcoin holder whale investors who purchased BTC within the past 155 days are currently sitting on $10.1 billion in unrealized gains, the highest of the current market cycle. These holders, often considered more reactive to volatility, have played a significant role in amplifying recent price swings.
Bitcoin Analysts’ Projections
Amid the surging price of Bitcoin, several analysts are optimistic about a new high. Billionaire investor Paul Tudor Jones, speaking on CNBC, predicted that Bitcoin could experience a massive rally next year, drawing parallels to the dot-com bubble of 1999.
Juan Leon, Senior Strategist at Bitwise, views Bitcoin’s current trajectory as evidence of its maturing market behavior. He noted that Bitcoin’s volatility is beginning to converge with that of gold, signaling its evolution into a more stable asset class.
Bitcoin emerges as a superior store of value compared to gold
As global economic uncertainty deepens and traditional markets face mounting pressure, Bitcoin is increasingly being viewed as a superior store of value compared to gold.
Once seen as a speculative asset, the world’s leading cryptocurrency is now gaining recognition as “digital gold”, a hedge against inflation, currency debasement, and geopolitical instability.
Matthew Sigel, Head of Digital Assets Research at VanEck, emphasized Bitcoin’s growing appeal among younger investors in emerging markets. According to Sigel, this demographic increasingly views Bitcoin as a superior store of value compared to gold.
The comparison between Bitcoin and gold has intensified throughout the year. Gold climbed above $4,000 per ounce. At the same time, Bitcoin set back-to-back record highs. For many investors, gold still serves as the established hedge. However, Bitcoin’s digital attributes and scarcity are resonating with a younger generation that is more accustomed to digital-native assets.
Future outlook
Bitcoin’s trajectory appears increasingly tied to institutional participation and regulatory clarity in the U.S. Analysts forecast that sustained ETF inflows, coupled with Bitcoin’s fixed supply and growing appeal among younger investors, could propel prices toward $150,000 by early 2026.
As the crypto asset continues to position itself as a digital hedge against inflation and economic instability, it may further cement its role as the preferred store of value for investors, potentially challenging gold’s dominance in the years to come.