Bitcoin Surges to New Highs as Political Uncertainty Grows
Bitcoin reached a fresh all-time high above $125,000 early Sunday, marking a significant milestone as investors react to ongoing U.S. government instability. The price peaked at $125,700 at approximately 12:45 a.m. ET on Coinbase, topping the previous August record of $124,290.
Market Trends and October Performance
At the time of reporting, Bitcoin was trading at $123,158. Historically, October has been a strong month for the world's largest cryptocurrency, with gains posted in 10 of the past 12 years. In the first five days of this October, it is up more than 11%.
Political Events Shape Crypto Sentiment
The federal government shutdown, which began October 1 after Congress failed to pass a funding bill, has increased attention on decentralized assets like Bitcoin. Fabian Dori, CIO at Sygnum Bank, noted that the shutdown amplified discussions around Bitcoins potential as a store-of-value. Dori also highlighted factors such as ample liquidity conditions and narrowing performance gaps between cryptocurrencies, equities, and gold.
Bitcoin Accumulation and Investor Trends
Recent data suggest that Bitcoin is in an accumulation phase, with selling from long-term holders easing and short-term investors beginning to stabilize. Analysis indicates that cooler speculation and steadier investor positions have at times led to significant price shifts, but the outcomes have varied historically.
Altcoin Market and Stablecoin Capitalization
Ether, while less volatile, posted a 7.5% gain against Bitcoin over the past week. Analysts, including Nic Puckrin from The Coin Bureau, observed that this could signal renewed interest in select altcoins. The current cycle shows early signs of altcoin outperformance, though gains appear limited to specific assets.
Additionally, stablecoins' total market capitalization approached new highs on Friday, with a 6.5% rise over the past month, according to DeFiLlama data. This increase reflects broader market momentum across the digital asset sector.
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