Bitcoin Hits Record $125,000 as Investors Brush Off U.S. Shutdown Fears

Bitcoin surged past $125,000 over the weekend, reaching a new all-time high as traders appeared unfazed by concerns over the ongoing U.S. government shutdown. The milestone surpasses the previous record set on August 14 and marks another strong leg in the so-called “Uptober” rally.

The latest surge was supported by gains in U.S. equities and a wave of renewed inflows into bitcoin-linked ETFs. Many investors are betting that the shutdown will weaken the U.S. dollar, fueling a “devaluation trade” into alternative assets such as gold, stocks, and cryptocurrencies.

“Right now, many assets—including stocks, gold, and even Pokémon cards—are hitting all-time highs. It’s no surprise that bitcoin is benefiting from the dollar devaluation narrative,” said Joshua Lim, Co-Head of Markets at FalconX.

Bitcoin has gained more than 30% this year, buoyed by a more supportive regulatory tone under President Trump and growing corporate adoption inspired by Michael Saylor’s bitcoin accumulation strategy.

Spot bitcoin ETFs saw $3.24 billion in net inflows during the week ending October 3 — the largest weekly inflow of 2025.

Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered, called the shutdown “significant” and said bitcoin could rise even further in the coming weeks. He reaffirmed his year-end price target of $200,000, noting that strong ETF inflows combined with fiscal uncertainty “could further push up cryptocurrency prices.”