Synopsis: Bitcoin surged to a record high of $125,000, driven by optimism over a possible US Fed rate cut, ETF inflows, and macroeconomic uncertainties. October’s historical ‘Uptober’ trend has further boosted investor sentiment.
New Delhi: The popular cryptocurrency Bitcoin soared to a record high of $125,000 on Sunday. According to CoinMarketCap, Bitcoin was trading at $124,917, up 1.97% in the last 24 hours, with a 7-day gain of 14%. Its market cap climbed 1.88% to $2.48 trillion.
Key Drivers:
- Optimism over a potential Federal Reserve rate cut.
- Increased inflows into Bitcoin ETFs.
- Macroeconomic uncertainties, including the recent US government shutdown.
Digital assets are no longer limited to speculative trading. They are increasingly being adopted as corporate treasury tools and solutions for transaction settlement inefficiencies, said SB Seker, Head of APAC at Binance.
The Uptober Effect: Historically, October has been Bitcoin’s strongest month for price appreciation. The term “Uptober” refers to the trend of significant Bitcoin gains during October, making it a favorable season for crypto investors.
Market Momentum: The rally has also triggered capital rotation into altcoins like Ethereum, Litecoin, and XRP, strengthening the broader crypto market. With September closing stronger than usual, analysts remain bullish on Q4, noting that Bitcoin ended four of the last five quarters in positive territory, according to CoinSwitch Market Desk.
Note: Crypto assets remain volatile, and investors are advised to consider risks before making investment decisions.
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