Bitcoin has risen to as much as 125,689 dollars in Asia, breaking records set in mid-August. Its growth is correlated with the rise of U.S. stocks and renewed inflows into Bitcoin-related ETFs. Additionally, the broader risk rally associated with the U.S. government shutdown has further encouraged investors in the world’s most well-known cryptocurrency.
Investors speculate that the U.S. government shutdown, which began on Wednesday and has created additional pressure on the dollar, will prompt investors to buy Bitcoin.
– “Given that many assets, including stocks, gold, and even collectibles like Pokémon cards, are reaching record highs, it is no surprise that Bitcoin is benefiting from the narrative of dollar degradation,” said Joshua Lim from the cryptocurrency brokerage FalconX to Bloomberg.
Bitcoin’s rise is also supported by its historical performance in October, which has earned it the nickname ‘Uptober‘. Bitcoin has risen in nine of the last ten Octobers.
The largest digital asset by market capitalization reached a previous high of 124,514 dollars on August 14, and has now increased by more than 30 percent this year.
Bitcoin has been on a continuous rise for much of last year, primarily due to a favorable legislative climate towards cryptocurrencies in Washington that came with Donald Trump’s new mandate.
Numerous large corporations have increased their demand for cryptocurrencies, and besides Bitcoin, Ether is also in demand, leading to widespread interest in digital assets.
