Updated Oct 5, 2025, 3:58 a.m. Published Oct 5, 2025, 3:42 a.m.
- BTC neared the record high during Sunday’s Asian trading hours, but struggled to keep gains.
- The U.S.-listed spot ETFs registered a net inflow of $3.24 billion in the week ended Oct. 3.
- The ongoing U.S. government shutdown seems to have galvanized haven demand for BTC.
Bitcoin BTC$123,907.54 surged during the Asian session on Sunday, rallying from $122,000 to $124,289 within minutes, pausing short of the record high of $124,429 reached in August.
The break above $124,000 followed a massive demand for U.S.-listed spot exchange-traded funds (ETFs). which collectively registering a net inflow of $3.24 billion last week. This marks the second-largest weekly inflow on record, according to data provider SoSoValue.
STORY CONTINUES BELOW
Other tokens such as XRP, ETH, SOL, DOGE followed BTC’s lead, gaining 1% to 3% during the Asian hours.
BTC’s rally arrives against the backdrop of a continued U.S. government shutdown, which analysts say has heightened safe-haven demand for the top cryptocurrency.
Jeff Dorman, Chief Investment Officer of Arca, noted just before the shutdown began, “The only time I buy BTC is when society loses faith in governments and local banks. $BTC likely a good buy here ahead of yet another U.S. government shutdown.”
Beyond political uncertainty, experts point to significant macroeconomic factors driving the rally.
Noelle Acheson, author of Crypto Is Macro Now newsletter, explained, “beyond the escalating risk of new conflicts, US inflation is more likely to increase than decrease, increased borrowing around the world will intensify currency concerns, and what’s good for gold is also good for BTC, especially since it is still woefully under-allocated.”
“Plus, the incoming rush of market support – lower rates, yield curve control and lots and lots of “money printing” – will boost global liquidity, which will seep into the riskier corners of institutional portfolios,” she added.
In short, BTC looks set to chalk up impressive gains during the seasonally bullish month of October. At the time of writing, the cryptocurrency was trading around $124,080, according to CoinDesk data.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
More For You
Sep 9, 2025
Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025
What to know:
- Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025
- Gate exchange emerged as major player with 98.9% volume surge to $746 billion, overtaking Bitget to become fourth-largest platform
- Open interest across centralized derivatives exchanges rose 4.92% to $187 billion
More For You
By James Van Straten|Edited by Aoyon Ashraf
10 hours ago
Despite some investors calling Q4 the end of the cycle, key long-term indicators suggest the bull market may just be getting started.
What to know:
- The 200-week moving average (200-WMA), bitcoin’s only consistently upward-trending metric, has just breached $53,000, while the realized price has climbed above it at $54,000.
- In past cycles, as long as the realized price stays above the 200-WMA, bitcoin has tended to push higher.
