Bitcoin surged to an all-time high on Sunday, crossing the $125,000 mark for the first time in history. The cryptocurrency traded at $125,245.57 as of 05:12 GMT, representing a 2.7 percent gain from the previous session and surpassing its earlier peak of $124,480 recorded in mid-August.
Market analysts attribute the rally to a mix of strong institutional inflows and favourable policy signals from the administration of U.S. President Donald Trump. The renewed investor appetite underscores a growing perception of Bitcoin as a hedge against financial market volatility and fiscal uncertainty.
Recent data shows that U.S.-listed Bitcoin exchange-traded funds (ETFs) have recorded sustained inflows, reflecting expanding participation from mainstream financial institutions. Analysts note that ETF momentum has been a key driver behind Bitcoin’s eight-day winning streak.
The surge also coincided with a weakening of the U.S. dollar, which posted multi-week losses against major global currencies. Investors have shifted focus to alternative assets as concerns rise over a potential U.S. government shutdown and delayed economic data releases.
“Bitcoin’s performance mirrors growing confidence in digital assets as a viable store of value,” said one market strategist familiar with institutional trends. “As regulatory clarity improves, traditional investors are broadening their exposure to crypto-linked products.”
Just days earlier, Bitcoin had fallen below $110,000, wiping out about $200 billion in total market value and triggering nearly $480 million in ETF outflows. The reversal highlights the cryptocurrency’s resilience and renewed investor confidence amid volatility.
The latest rally pushes Bitcoin’s market capitalisation to new heights, reaffirming its dominance within the digital asset space.
