Bitcoin (BTC) surged to a record $126,223 on Monday, fueled by a convergence of macro factors: the U.S. government shutdown, a weakening dollar, and strong spot ETF inflows. The cryptocurrency currently trades near $124,000, extending its weekly gains to roughly 15% and lifting the broader crypto market.
Supply Tightens as Coins Leave Exchanges
BTC holdings on exchanges have dropped to 2.83 million, a six-year low, with 170,000 coins withdrawn over the past month. This movement into longer-term storage is constraining supply and supporting the price surge.
Global Milestones and Regional Influence
Bitcoin also hit records in euros and Swiss francs, surpassing EUR 106,000 and CHF 99,600. In Japan, expectations of Abenomics-style easing under the new prime minister are adding bullish momentum, reinforcing the market’s narrative of easier liquidity.
Altcoins Follow Suit
Ethereum (ETH) rose 4% to $4,700, targeting $4,800–$5,000 if momentum continues. Binance Coin (BNB) climbed over 20% to $1,240, Dogecoin (DOGE) gained 6% to $0.26, XRP approached $3, and Solana (SOL) jumped 12% in the past week. The total crypto market capitalization reached $4.27 trillion before settling near $4.24 trillion, with the sentiment index at 71, signaling continued bullish sentiment without extreme euphoria.
ETF-Driven Demand
Weekly spot ETF inflows hit $3.2 billion, the second-largest weekly total ever, pushing cumulative allocations since January past $60 billion. Ryan Lee, chief analyst at Bitget, noted, “Bitcoin’s climb above $124,000 reflects deepening institutional conviction.” However, some long-term holders have been selling since July, which could limit gains if buying momentum slows.
Political Uncertainty Spurs Safe-Haven Flows
The U.S. government shutdown has delayed key economic reports, nudging investors toward hard assets like BTC and gold. A softer dollar and expectations for a cautious Fed add to the bullish environment.
Key Level to Watch
$125,000 has emerged as critical support, serving as a psychological anchor and setting the stage for potential further upside.
