• Bitcoin hit a record $125,750, climbing over 13% in a week amid renewed investor optimism.
• Economic uncertainty and “Uptober” trends fueled Bitcoin’s rally as traders sought safe assets.
• Analysts see further upside, with forecasts placing Bitcoin near $200,000 by year’s end.

Bitcoin reached a new all-time high today, as it increased to $125,750 and surpassed its previous peak of $124,466. The world’s biggest cryptocurrency has gained over 12.42% in the last week. It has bounced significantly from $109,000 at the end of September. As of press time, BTC is trading at $123,233, up by 0.60% over the past day.

Source: CoinMarketCap

Analysts highlighted that the rally is a result of increasing economic uncertainty and demand from investors for safer assets. The current U.S. government shutdown has some market participants on edge, leading some to seek alternatives. Bitcoin is also returning as a hedge for conventional risks.

Bitcoin’s appeal as a safe haven has grown, said Geoffrey Kendrick, head of digital assets at Standard Chartered. He said the logjam in Washington over the budget is creating a little more interest in decentralized assets.

Also Read: Bitcoin Breaks New All-Time High Barriers, Can Bulls Push Toward $140K?

Uptober Fuels Bitcoin’s Momentum

There is also the more widely known “Uptober” trend for BTC, which this month’s rally could indicate. October has been one of the best months for cryptocurrency, historically. Bitcoin’s average return in October for the past 10 years is over 21%. In the final quarter of the year since 2015, it has posted an average gain of nearly 58%.

One market analyst, Ted, noted that BTC’s liquidity parameters have been flashing a bullish sign. Most of the upper liquidity zones are already taken out,” he said. There is still a solid cluster between $117,000 and $120,000. There might be short-term corrections for late traders, though, he said.

Source: X

Bitcoin had traded in a narrow range from bottom to top for months. But some analysts saw broader market dynamics signaling that such a breakout was looming. Growth of the World’s M2 money supply, the increase in stablecoins issuance and a sharp rally in gold all suggested that BTC’s price would follow suit.

Source: Bitcoin Magazine

JPMorgan analysts believe that BTC is still undervalued relative to gold. If what he dubs the “debasement trade” plays out, BTC could top $165,000, they estimate. This transaction represents investors purchasing assets that are a hedge against depreciating fiat or paper currencies.

Bitcoin’s Road to $200K Gains Momentum

The most recent rally has left institutional and retail traders feeling more confident. Other investors are treating BTC not so much as a speculation but as a macroeconomic signal. Its trajectory now reflects changes in inflation, liquidity and government policy.

This is also an example of BTC maturation, said Kendrick. He predicts the same momentum will carry forward as investors take cover from market convulsions. Some analysts expect short-term gains above $135,000, while others are forecasting a potential year-end surge toward $200,000 if market conditions hold up.

The surge also occurs within the context of broader risk sentiment trends. The correlation of BTC with gold has reportedly strengthened, indicating that both assets are being fueled by the same global uncertainty. Broader central bank liquidity boosts in the world’s largest economies are also adding to the gains.

The new record for Bitcoin is a reminder of how volatile it can be. It can jump quickly if conditions in the market are right but is still vulnerable to events around the world. Traders are now waiting to see how long this momentum would continue and if BTC can carry its gains through the end of the year.

Also Read: Bitcoin Eyes $165,000 Target Following Strong Market Demand and ETF Inflows