Bitcoin Tops $125K Amid $3.24 Billion Inflows into Spot ETFs
Bitcoin (BTC) climbed to a record high above $125,000 on Sunday, extending its weekly gain to 11%, according to CoinDesk data. The surge was driven by a significant wave of demand for U.S.-listed spot exchange-traded funds (ETFs), which collectively recorded $3.24 billion in net inflows for the week ended Oct. 3, marking the second-largest weekly inflow on record, per SoSoValue.
Other major cryptocurrencies, including Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE), mirrored Bitcoin’s momentum, posting gains of 1% to 3% during Asian trading hours.
Safe-Haven Demand Amid U.S. Government Shutdown
Bitcoin’s rally comes amid the ongoing U.S. government shutdown, which analysts say has heightened demand for BTC as a safe-haven asset. Jeff Dorman, Chief Investment Officer at Arca, commented:
“The only time I buy BTC is when society loses faith in governments and local banks. BTC is likely a good buy here ahead of yet another U.S. government shutdown.”
Macroeconomic Factors Fueling the Rally
Macro trends are also supporting Bitcoin’s ascent. Noelle Acheson, author of the Crypto Is Macro Now newsletter, noted:
“Rising geopolitical risks, persistent U.S. inflation pressures, and increased global borrowing are intensifying currency concerns. What benefits gold also benefits BTC, which remains under-allocated.”
She added that ongoing monetary support—including lower interest rates, yield curve control, and expansive liquidity measures—is expected to funnel capital into riskier assets, boosting institutional and retail demand for Bitcoin.
Looking Ahead
With October historically being a seasonally bullish month for crypto, Bitcoin appears well-positioned for continued gains. At the time of writing, BTC was trading near $124,080, according to CoinDesk.
