Bitcoin is riding a strong wave of momentum, and October is proving to be one of its favorite months. The world’s largest cryptocurrency has built a reputation for performing well during this time of year, earning the nickname “Uptober.” In fact, Bitcoin has seen gains in nine out of the last ten Octobers, and this year is no different.

Over the weekend, Bitcoin hit a new all-time high of $125,689 in Asian trading hours, breaking its previous record from August 14. This surge is part of a broader market rally, as investors respond to the recent U.S. government shutdown and growing concerns over the weakening value of the dollar. Many are turning to Bitcoin and other digital assets as a safe haven in what some are calling the “debasement trade.”

The rise in Bitcoin prices is also being helped by stronger U.S. stock markets and increased interest in Bitcoin-linked exchange-traded funds (ETFs). With public sentiment shifting towards riskier assets and traditional investments like gold and stocks also hitting record highs, Bitcoin is benefiting from its growing reputation as digital gold.

Crypto expert Joshua Lim from FalconX noted that when assets across the board — including gold, stocks, and even collectibles like Pokémon cards — are hitting new highs, it’s clear that investors are looking for places to protect their wealth from the falling value of the U.S. dollar. Bitcoin, with its limited supply and growing adoption, fits right into that narrative.

Bitcoin’s price climb this year has also been supported by a more favorable political environment in Washington. Under President Donald Trump, crypto-friendly policies have encouraged public companies to add Bitcoin to their balance sheets. Michael Saylor’s company, Strategy, led the charge, inspiring others to follow suit. This trend has spilled over into other digital currencies like Ethereum, pushing up the broader crypto market.

Meanwhile, U.S. stock markets closed last week at record highs thanks to big developments in artificial intelligence deals. Despite concerns about a government shutdown and slowing business activity, investors stayed optimistic. At the same time, the dollar weakened, Treasury yields dropped, and gold prices climbed for the seventh week in a row — signs that markets are hedging against inflation and declining interest rates.

Geoff Kendrick, head of digital asset research at Standard Chartered, believes this shutdown is different. He expects Bitcoin to keep rising during this period, pointing out that the crypto market is much more mature now than it was during the last shutdown in 2018-2019.

In summary, Bitcoin’s price surge is being fueled by seasonal trends, rising interest in crypto investment vehicles like ETFs, a weakening dollar, and investor fears over inflation and government instability. With October historically favoring Bitcoin and market conditions aligning in its favor, many are betting on even more gains ahead.