Bitcoin Hits Record $126K on Institutional Inflows and Debasement Bets
Bitcoin maintained its robust upward trajectory, reaching a new all-time high of $126,198 on October 7, surpassing its prior peak of $125,559 noted just a day before. The increase is occurring alongside ongoing institutional investments, as investors become more hopeful about possible positive indications from the US Federal Reserve. The positive sentiment extended beyond just Bitcoin. Ethereum has regained the $4,700 mark, and BNB has surged to a new all-time high exceeding $1,200. Analysts linked the wider rally to the current US government shutdown, which has heightened worries regarding economic stability. This is said to be driving the so-called “debasement trade,” where investors seek out crypto assets as a safeguard against possible currency devaluation and fiscal instability.
Even with the recent surge, indications of profit-taking are becoming apparent at elevated levels. At last check, Bitcoin was trading 0.35 percent higher at $124,261.27, with a 24-hour trading volume of approximately $69.14 billion, according to data. In the last day, the asset has seen a range from $123,340 to $126,198. Bitcoin’s market capitalisation has now reached $2.47 trillion, solidifying its position as the largest digital asset globally. The surge in the leading currency, was supported by significant institutional inflows and a declining US dollar. “The current US government shutdown has strengthened the wider ‘debasement trade’, leading to increased interest in both crypto and gold.” Institutional inflows are reaching unprecedented heights, yet macro cues are becoming increasingly important as markets look for encouraging signals from the Fed, according to Edul Patel. According to Patel, the dovish tone in September’s FOMC minutes along with softer US jobless claims could potentially extend Bitcoin’s rally towards $129,000.
“Meanwhile, with the Dollar Index down 10 percent this year, any further weakness increases the appeal for Bitcoin as a hedge, attracting even retail investors into the rally,” Patel stated. Data indicates ongoing accumulation, as exchange reserves keep decreasing. From a technical perspective, Bitcoin is encountering resistance around $127,000, with support levels grouped between $120,000 and $122,000. The MACD continues to show positive momentum indicators. “A decisive breakout could set the stage for a move toward $130,000 and beyond, whereas failure to clear resistance may prompt a near-term correction,” analysts noted.
The positive sentiment also spread to altcoin cryptocurrencies. Ethereum, the second-largest cryptocurrency by market cap, was trading up by 3.88 per cent at $4,708—just 5 per cent away from its peak of $4,953 reached on August 25. The currency has fluctuated within the range of $4,511 to $4,736 over the past 24 hours. In the altcoins space, Starknet, MYX Finance, Mantle, Stacks, Bittensor, Astar, PancakeSwap, Pudgy Penguins, Bonk, Chainlink, Pendle, dogwifhat, Lido DAO, Sonic, Arbitrum, Dogecoin, Hedera, Ondo, Quant, Algorand, Worldcoin, Polkadot, Kaspa, Sei, and Celestia were the other gainers, rising up to 23 percent. On the other hand, Zcash, Hyperliquid, Pump.fun, Aptos, Litecoin, SPX6900, Curve DAO Token, Monero, and ether.fi experienced setbacks, recording intraday losses of up to 7 percent.
