Bitcoin Breakout in Sight: Here’s Why $125,500 Could Be Next
Over the past week, Bitcoin has had a strong upswing, rising 14% from a range bottom last Friday around $108,600. It is currently trading within a few dollars of $124,000. This spike might push Bitcoin above $125,500 and into a new price-discovery zone. The overall power of this rise is demonstrated by the fact that the whole cryptocurrency market capitalization has surpassed $4.21 trillion. The US government shutdown and the way that markets seem to be ignoring it are two unexpected factors driving this price increase. Investors are becoming more anxious as federal agencies lay off employees and economic data releases are delayed.
Bitcoin Gains Amid Macro Shifts: Could Q4 Deliver Record Highs?
Bitcoin has profited greatly from these circumstances, increasing 8% during the closure as traders have positioned themselves around the absence of a clear policy direction. The government halt also made it more difficult for the Fed to make judgments since it delayed the release of jobs and inflation data. This increased speculative flows into cryptocurrency.
The analysts clarified that the US macroeconomic environment is still favorable and that inflation is decreasing. The Federal Reserve’s more dovish posture is increasing demand for riskier assets, they noted. The path toward fresh new all-time highs in Q4 looks well supported if inflows stay steady and economic data do not provide any positive surprises. This implies that market momentum might keep up a steady pace throughout the year’s last quarter.
Bitcoin’s movement toward a new all-time high appears genuinely organic. We suspect that Trump’s announcement of potentially considering a stimulus cheque for every citizen, funded by tariffs, could also contribute to a further rise in Bitcoin’s price. This could mirror what we witnessed following the Covid stimulus cheques. Meanwhile, steady ETF inflows provide a clear tailwind.
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Coinbase Premium Gap Signals Surge in US Bitcoin Demand
Strong demand is behind the spike, according to on-chain statistics. In a single hour, the taker buy volume on all exchanges increased by more than $1.6 billion, according to analyst Maartunn. The Coinbase Premium Gap, a metric used to compare the prices of Coinbase and Binance, increased to $91.86 in the meantime. US investors are paying around $92 more per Bitcoin on Coinbase, according to analyst Burak Kesmeci, indicating significant demand from the US. But since mid-August, when bullish momentum has traditionally eased in 2025, this premium is the largest since then.
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