Bitcoin Hits New Record High as US Shutdown Sparks Safe-Haven Buying

Bitcoin has reached a new all-time high, climbing to $125,689 over the weekend. This surge comes as investors react to growing concerns over the ongoing US government shutdown. With uncertainty rising, many are moving their money into safer assets—Bitcoin being one of the top choices.

The world’s largest cryptocurrency is gaining momentum thanks to a few key factors. One of the biggest reasons is the recent increase in US stock market performance, which has helped lift investor confidence overall. At the same time, more money is flowing into Bitcoin-linked exchange-traded funds (ETFs), adding fuel to the rally.

Some analysts believe this latest price jump is part of a broader trend known as the “debasement trade.” As the value of the US dollar weakens and inflation concerns grow, people are turning to assets like Bitcoin, gold, and even collectibles like Pokémon cards as stores of value. Joshua Lim from crypto firm FalconX noted that with so many assets hitting record highs, it’s no surprise that Bitcoin is riding this wave.

Adding to the optimism is Bitcoin’s strong performance in October—often called “Uptober” in the crypto world. Historically, Bitcoin has posted gains in nine out of the last ten Octobers, making this month a favorite for crypto investors.

Back in August, Bitcoin had previously peaked at $124,514. Now, it’s up more than 30% since the beginning of the year. Much of this growth has been supported by a favorable political climate for crypto under President Donald Trump’s administration. Public companies—led by Michael Saylor’s firm Strategy—have also been buying large amounts of Bitcoin, which has encouraged other businesses to do the same.

This bullish trend isn’t limited to Bitcoin. Other digital currencies like Ethereum are also seeing gains as more investors look for alternatives to traditional assets.

Meanwhile, US stocks hit fresh highs on Friday thanks to new developments in artificial intelligence and major business deals. At the same time, the dollar and US Treasury yields dropped, while gold marked its seventh straight week of gains—driven by central bank purchases and falling interest rates.

Geoff Kendrick from Standard Chartered pointed out that this government shutdown is different from previous ones. During the last major shutdown in 2018–2019, Bitcoin was still growing and didn’t move closely with other markets. Now, it’s behaving more like traditional assets—and benefiting from investor demand during times of economic stress.

Key Takeaways:
– Bitcoin hits a new all-time high at $125,689
– Investors are buying Bitcoin as a safe-haven during the US government shutdown
– ETFs and rising stock markets are helping drive prices up
– October is historically a strong month for Bitcoin (“Uptober”)
– Broader trend includes rising prices in gold and other digital assets
– Public companies and political support are boosting long-term demand

With market uncertainty on the rise, Bitcoin is once again proving itself as a top choice for those looking to protect their wealth.