Bitcoin surged to a new all-time high on Sunday, climbing to $125,689 and surpassing its previous August peak of around $124,500, according to Bloomberg News.
The rally comes as investors grow wary of a potential US government shutdown and seek safe-haven assets, even while US shares continue to post gains. “With many assets including equities, gold and even collectibles like Pokemon cards hitting all-time highs, it’s no surprise Bitcoin is benefiting from the dollar debasement narrative,” said Joshua Lim, co-head of markets at crypto prime brokerage firm FalconX.
Analysts point to a shift in US regulatory and political attitudes as another factor fueling bitcoin’s rise. In July, the US House of Representatives passed three landmark cryptocurrency bills, marking a significant departure from the scepticism shown under Democratic president Joe Biden.
The reversal has been driven in part by President Donald Trump, whose family has actively promoted cryptocurrencies and pursued various crypto ventures that have added to his personal wealth. Trump’s embrace of digital assets has given the industry a political boost, further propelling the market.
