Bitcoin soars past $125,000, hitting record highs
3 Min Read
Bitcoin hits a new all-time high above $125,000 amid US government funding uncertainty and supportive crypto regulations.
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An advertisement for Bitcoin cryptocurrency is displayed on a street in Hong Kong, on February 17, 2022. (AP)
Bitcoin surged to a new all-time high on Sunday, climbing above $125,000, marking a fresh milestone for the world’s leading cryptocurrency. The digital asset reached $125,689, surpassing its previous record of around $124,500 set in August.
The rally comes amid growing investor caution over a potential US government shutdown, as lawmakers negotiate funding for federal operations. Gains in US equities and a broader search for safe-haven assets have further supported Bitcoin’s ascent, according to Bloomberg News.
Regulatory boost and institutional support
Observers note that Bitcoin’s rally has been bolstered by the crypto-friendly stance of US President Donald Trump and his family, who have actively promoted digital assets and engaged in various cryptocurrency ventures. Trump's embrace of cryptocurrencies has reversed years of skepticism under former President Joe Biden.
In July, the US House of Representatives passed three major cryptocurrency bills, providing a clearer regulatory framework for the industry. These legislative developments have strengthened investor confidence and fueled demand for Bitcoin and other digital assets.
“With many assets including equities, gold, and even collectibles like Pokemon cards hitting all-time highs, it’s no surprise Bitcoin is benefiting from the dollar debasement narrative,” said Joshua Lim, co-head of markets at crypto prime brokerage firm FalconX, as cited by Bloomberg News.
Read more: Crypto group backed by Trump sons scouts Bitcoin firms in Asia
Market momentum
Bitcoin’s surge reflects broader trends in financial markets, where investors are increasingly seeking alternative stores of value amid geopolitical uncertainty, rising inflation, and market volatility. Analysts say the digital currency’s recent record-breaking performance underscores its growing role as a mainstream investment vehicle. As Bitcoin continues to attract institutional and retail investors alike, the cryptocurrency’s trajectory is expected to remain closely tied to global economic conditions, US fiscal policies, and evolving regulatory frameworks.
Moreover, the ongoing US government shutdown, which began at 12:01 am EDT on October 1, 2025, has added to the uncertainty fueling Bitcoin’s recent surge. Marking the first shutdown under President Donald Trump’s second term, it has furloughed roughly 800,000 federal employees, with another 700,000 working without pay. The deadlock stems from disputes over federal spending, foreign aid, and health insurance subsidies, disrupting key operations.
The shutdown costs an estimated $400 million per day, exceeding $1.2 billion by Day 4, with potential permanent layoffs under discussion. With Congress still deadlocked and no agreement in sight, investors are increasingly turning to Bitcoin as a hedge against financial uncertainty.
