Bitcoin, the world’s most popular cryptocurrency, has achieved a historic milestone, soaring past the $125,000 mark per coin, according to reports from Business Insider Polska, citing Bloomberg. This new all-time high surpasses the previous record set on August 14th.
Analysts are attributing this significant surge primarily to the US shutdown, which has injected instability into the American economy. As a result, investors are increasingly turning to alternative “safety assets,” with cryptocurrencies – and Bitcoin in particular – being the main beneficiary.
“Many assets, including stocks, gold, and even collectibles like Pokemon cards, are reaching record highs. It’s no surprise, then, that bitcoin is benefiting from the dollar devaluation narrative,” Joshua Lim, chief markets officer at FalconX, explained to Bloomberg.
The record-breaking rally follows a previous high of $124,000, which was initially fueled by strong institutional demand. CryptoQuant data now shows that an astounding 99.3% of all circulating Bitcoin coins are currently valued higher than their purchase price.
Despite the euphoria, experts are sounding a note of caution, suggesting a short-term market correction would be a natural and healthy development. Such a brief pullback would allow the market to consolidate gains before potentially continuing its upward trajectory.
The immense profitability is generating some selling pressure as investors opt to take profits. However, market sentiment remains relatively measured. The Fear & Greed Index is currently at 74 points, placing it in the “greed” zone, but still well below the levels of “euphoria” seen during the peak of the bull market last year.
