TLDR
- Bitcoin hits $125,689, driven by concerns over U.S. shutdown and inflation.
- Investor interest grows in Bitcoin as a hedge against dollar weakness.
- October’s “Uptober” trend boosts Bitcoin, extending the strong rally in 2025.
- Institutional support strengthens Bitcoin, fueled by favorable regulations.
Bitcoin surged to a record high over the weekend, reaching $125,689, driven by rising investor anxiety over the U.S. government shutdown and the erosion of confidence in fiat currencies. The world’s largest cryptocurrency surpassed its previous mid-August peak, maintaining its strong performance in 2025. This milestone reflects a broader shift in investor behavior as traditional markets face increased pressure.
Investor Behavior Shifts Toward Safe-Haven Assets
The U.S. government shutdown, combined with ongoing inflation and growing government deficits, has intensified interest in alternative stores of value. Investors are increasingly turning to Bitcoin, gold, and select equities as safer options in light of rising economic uncertainties. Analysts suggest that the shutdown and concerns over currency devaluation have sparked the “debasement trade,” a term traders use for assets that can withstand currency weakness. As a result, Bitcoin is now being treated by many investors as a digital equivalent of gold.
Joshua Lim, co-head of markets at FalconX, pointed out that Bitcoin’s appeal is growing as concerns about dollar weakness intensify. “As fears around dollar weakness grow, it’s no surprise the asset is benefiting from the debasement narrative,” Lim said. Meanwhile, institutional investors are playing a larger role in Bitcoin’s rise, with public companies such as Strategy Inc. continuing to add Bitcoin to their balance sheets.
Economic Pressures Contribute to Bitcoin’s Rise
The growing appetite for Bitcoin as a hedge against macroeconomic risk is fueled by several factors. Persistent U.S. inflation, rising government debt, and uncertainty surrounding Federal Reserve policy have led to widespread skepticism about fiat currency stability. This environment is particularly noticeable in emerging markets, where trust in traditional currencies is further eroding.
Geoff Kendrick, global head of digital assets research at Standard Chartered, emphasized that Bitcoin is now seen as part of the global risk complex. He noted that Bitcoin is increasingly viewed as a serious macro hedge in light of ongoing economic pressures. As such, Bitcoin’s role as a store of value continues to strengthen.
‘Uptober’ Trend and Institutional Support Boost Bitcoin
October, historically one of Bitcoin’s strongest months, has also contributed to the cryptocurrency’s upward momentum. Bitcoin has finished higher in nine of the past ten Octobers, a pattern that traders refer to as “Uptober.” This seasonal trend, combined with continued inflows into Bitcoin-linked ETFs, has further reinforced Bitcoin’s positive trajectory. Additionally, record highs in U.S. equities and surging demand for AI stocks have also supported Bitcoin’s growth.
Institutional support remains a key driver. The Trump administration’s favorable signals regarding digital asset regulation and taxation have encouraged further investment. Central bank buying and falling real interest rates have also contributed to Bitcoin’s rise alongside gold, which recently extended a seven-week winning streak.
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