Bitcoin reached a new all-time high (ATH), briefly surpassing $125,000. The main driver behind its price growth is strong demand from institutional investors, who view BTC as a hedging tool amid macroeconomic instability in the United States.
On October 5, Bitcoin set a new record, registering an ATH of $125,506, according to CoinGecko data. The new price peak was the result of an ongoing upward trend. Over the past week alone, BTC gained 10.5%.
The ATH came against the backdrop of rising investor concerns about macroeconomic instability in the U.S. Investors fear a prolonged shutdown of the U.S. federal government due to budget disputes, which boosted demand for alternative assets. In this context, Bitcoin is being considered as an independent store of value, free from political risks. According to CoinDesk, net inflows into Bitcoin-based exchange-traded funds totaled $3.25 billion last week.
Another factor indirectly contributing to the price rally is the decline in BTC reserves on centralized exchanges. According to Glassnode, as of October 4, the total BTC balance on CEXs stood at 2.83 million, the lowest level in the past six years. Meanwhile, CryptoQuant reported an even lower figure of 2.45 million BTC. Withdrawing assets from centralized trading platforms indicates that investors plan to hold coins long-term, since exchange balances are traditionally considered “liquid supply” that could be sold at any time.
After hitting its peak, Bitcoin’s price corrected. As of October 6, 14:00 (GMT+2), BTC was trading around $124,000. Analysts believe the pullback is temporary, expecting the asset to stabilize in the $120,000–$122,000 range before the next upward move.
The previous ATH of $122,000 was also reached, due to growing institutional demand amid regulatory changes.
