Bitcoin breaks record; soars past $125,000

Bitcoin has surged to a new record high of $125,245.57 at 05:12 GMT on Sunday, breaking its previous peak from mid-August, as investors shifted towards digital assets amid a weakening US dollar and uncertainty surrounding the ongoing US government shutdown.

The world’s largest cryptocurrency by market value rose by nearly 2.7 per cent during Asian trading on Sunday, continuing a strong upward trend that has seen it gain more than 30 per cent since the beginning of the year.

Market analysts say the rally has been fuelled by optimism over friendlier cryptocurrency regulations under the Trump administration, coupled with increased demand from institutional investors and steady inflows into bitcoin exchange-traded funds.

Bitcoin’s previous record of $124,480 was set in August, buoyed by regulatory clarity and positive sentiment among major financial institutions. The latest milestone now places the digital currency’s value at approximately €107,000.

The broader cryptocurrency market has mirrored Bitcoin’s surge, with Ethereum, Solana and other major tokens recording moderate gains in weekend trading.

Meanwhile, the US dollar index posted multi-week losses on Friday, as uncertainty over the shutdown delayed key economic data, including payroll figures that investors rely on to assess the health of the American economy.

Financial analysts say the combination of a weaker dollar and increasing acceptance of digital assets as a hedge against economic volatility has strengthened Bitcoin’s position as an alternative store of value.

If current momentum continues, some traders predict that Bitcoin could test the $130,000 mark before the end of the year, though others caution that volatility remains a defining characteristic of the cryptocurrency market.