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Bitcoin Nears Resistance at $130K Amid Strong U.S. Investor Demand
Bitcoin (BTC) has posted a stunning 14% gain over the past week, surging from last Friday’s lows near $108,600 to just shy of $124,000. This powerful move has positioned the world’s largest cryptocurrency on the cusp of price discovery, with analysts eyeing a breakout above $125,500 as the next major milestone.
At the same time, the total crypto market cap crossed $4.21 trillion, reflecting broad-based strength across digital assets. But what’s fueling this sudden rally? Surprisingly, part of the answer lies in Washington.
U.S. Government Shutdown Ignited the Rally
While U.S. federal agencies furlough workers and key economic data releases face delays, markets have largely brushed aside concerns. In fact, the political uncertainty appears to be pushing investors toward Bitcoin.
Since the government shutdown began, Bitcoin has climbed 8%, buoyed by traders reacting to the lack of clarity around future fiscal and monetary policy. Without inflation and labor market data, the Federal Reserve’s decision-making becomes more opaque, and that lack of visibility seems to be driving speculative flows into crypto.
Trump’s Stimulus Talk Adds Fuel to the Fire
Analysts at Bitfinex told Cointelegraph that Bitcoin’s rally appears “genuinely organic.” But they also highlighted a new potential catalyst: Donald Trump’s recent comments suggesting he might consider stimulus cheques for every American, funded through tariffs.
Such a move would echo the Covid-era stimulus packages, which previously sparked retail-driven crypto surges. Combined with steady ETF inflows, Bitfinex believes this kind of stimulus speculation could further bolster BTC’s rise.
“Macro conditions remain supportive,” the analysts added, noting easing inflation and a more dovish Fed, both of which are encouraging risk-on behavior. If ETF inflows continue and no major upside surprises emerge in U.S. macro data, they said, “new all-time highs in Q4 appear well supported.”
On-Chain Data Confirms Strong Buy-Side Pressure
It’s not just macro sentiment driving Bitcoin. On-chain data also shows clear signs of demand surging.
Crypto analyst Maartunn highlighted a taker buy volume spike of over $1.6 billion in a single hour across all exchanges—an extremely rare occurrence that reflects intense buy-side aggression.
Meanwhile, the Coinbase Premium Gap—which measures the difference in Bitcoin’s price on Coinbase versus Binance—rose to $91.86, according to analyst Burak Kesmeci. This indicates that U.S.-based investors are willing to pay a steep premium for BTC, a strong signal of domestic institutional and retail demand.
However, Kesmeci cautioned that this is the highest premium since mid-August, a level where bullish momentum previously cooled. That historical context has led some analysts to watch the next few days closely.
Price Discovery Ahead? Analysts Weigh In
With Bitcoin knocking on the door of $124,000, traders are preparing for a potential breakout into price discovery territory—a stage where new all-time highs could quickly emerge.
Crypto trader Jelle noted that $120,000 is now acting as support, and if that level holds through the weekend, he expects “price discovery to resume as early as next week.”
Fellow analyst Rekt Capital described the current market environment as “Phase 3 Price Discovery” in Bitcoin’s broader cycle. In this phase, prices break above prior highs, triggering a rush of momentum buying and speculative entries.
$130K Becomes the Next Major Resistance
Despite the bullish sentiment, analysts are keeping a close eye on resistance. Skew, a well-followed crypto analyst, pointed out that sell orders are clustered heavily around $130,000, making it the next significant hurdle for bulls.
He also emphasized the importance of upcoming daily closes, especially given the risk-on positioning on Binance and robust Coinbase inflows. These will help confirm whether BTC can sustain its momentum or if a short-term pullback is on the horizon.
The Road Ahead: All Eyes on Q4
With Q4 historically being Bitcoin’s strongest quarter, the current setup has many in the crypto space feeling optimistic. The rally appears supported by both macro forces and on-chain fundamentals, with speculative energy growing by the day.
As the U.S. shutdown continues and economic data remains delayed, uncertainty may prove to be Bitcoin’s best friend—at least for now.
While analysts expect volatility, many agree that the conditions are ripe for a potential break into new highs—and that the crypto market may be just getting started.
