Bitcoin’s March to New Heights: The Bull Run’s Not Over Yet
Over the weekend, Bitcoin (BTC) sent ripples through the cryptocurrency market, soaring past $125,000 and marking a new record high. This bullish move comes amid a backdrop of global economic shifts and hints at an easier monetary and fiscal policy environment, particularly in the United States, where a government shutdown looms. The narrative of a sustained bull market is further bolstered by the strategic maneuvers within the crypto space, as traders and analysts alike keep a keen eye on the unfolding developments.
A Weekend to Remember
Bitcoin’s ascent above $125,000 on Sunday was a testament to the market’s anticipation of softer economic policies worldwide. In the United States, the government shutdown has stirred expectations of caution and potential easing from central banks, while in Japan, the new Prime Minister’s inclination towards Abenomics—a strategy of aggressive economic easing—adds another layer to the global outlook. As a result, the total cryptocurrency market capitalization surged to approximately $4.07 trillion, nudging the Fear and Greed index to 64. Though elevated, this reading isn’t at euphoric levels, suggesting room for further risk-taking without the need for excessive leverage.
The surge in Bitcoin’s value appears to be driven more by spot demand and the influence of Exchange-Traded Funds (ETFs) than by a one-day squeeze. Notably, Bitcoin’s leap occurred on a Sunday, a day typically marked by thinner liquidity and lower leverage in the markets. This observation, coupled with relatively modest liquidations of $65 million in BTC-tracked futures, underlines the sustained nature of this rally.
Altcoins and Profit-Taking
While Bitcoin’s climb steals the spotlight, the altcoin market has experienced its share of profit-taking. BTC prices dipped slightly over 1% in the past 24 hours, with notable declines in Dogecoin (DOGE) and Cardano’s ADA. Other major altcoins, including XRP, BNB Chain’s BNB, and Tron’s TRX, saw losses of up to 2%, while Ethereum (ETH) experienced a minor decline of just over 0.5%. Yet, BNB stands out as a weekly outlier, maintaining a price of approximately $1,184 and recording a remarkable 17% gain over seven days. This suggests ongoing rotations within ecosystems, even as the base asset, Bitcoin, remains in demand.
The Catalyst of Stablecoins
A critical factor underpinning the bullish sentiment in the crypto market is the burgeoning stablecoin supply, which has expanded by a record $45 billion over the last quarter. Approximately two-thirds of this new issuance occurred on the Ethereum network, providing the “dry powder” necessary to propel the market higher. The ongoing U.S. government shutdown adds another layer to this narrative, potentially delaying economic data and nudging central banks towards a more cautious approach—aligning seamlessly with the optimistic projections on price charts.
The $125K Benchmark: A Double-Edged Sword
The $125,000 milestone serves as both a target and a litmus test for Bitcoin’s trajectory. Experts offer varied insights into this critical juncture. Nick Ruck from LVRG interprets the move as a hedge bid linked to institutional flows and inflation concerns, a perspective consistent with the re-acceleration of ETF allocations during market dips. Meanwhile, Alex Kuptsikevich of FxPro highlights the technical breakout but cautions about long-term holders who have been offloading assets near these levels since July. Both perspectives hold merit: a range break can invite supply, yet a trend endures only if fresh demand absorbs it.
Kuptsikevich further speculates, “The next step could well be an attempt to update historical highs approaching $125K. At the same time, it is worth paying attention to the activity of long-term sellers, who have been actively selling near these levels since July: we may see a new episode of selling on the rise.” The challenge for traders lies in treating $125,000 as both a magnet and a test. A swift rise followed by a retreat suggests supply dominance, whereas a steady approach with stable funding could pave the way for further gains.
Looking Ahead
As the cryptocurrency market navigates these dynamic landscapes, the ongoing developments in Bitcoin and altcoins will undoubtedly shape the narrative in the coming weeks. The interplay of geopolitical factors, institutional interest, and technical indicators will continue to drive the market’s direction. For now, traders and investors are cautiously optimistic, aware that while the bull run isn’t over, the path forward will require careful navigation and strategic decision-making. With Bitcoin testing newfound heights and the altcoin market in flux, the next chapter in this crypto saga is poised to be as thrilling as ever.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
