Bitcoin Sets New Record High Above $126K As Political Gridlock Boosts Haven Assets

Bitcoin surged to a new record high above $126,000 on Monday, extending gains as investors sought shelter from political and economic ￰0￱ milestone added to a powerful run that has seen the cryptocurrency nearly double in value over the past ￰1￱ world’s largest digital asset climbed as high as $126,080 after breaching the $125,000 mark for the first time on ￰2￱ later steadied at $124,712, still up 0.6% and on track for a second straight session of ￰3￱ rose 3.4% to $4,676, XRP edged up 0.4% to $2.98, while BNB gained 3.6% to $1,215. $BTC new ATH above $126,000. pic. twitter. com/3q6XxKjUij — CoinGecko (@coingecko) October 6, 2025 US Government Shutdown Spurs $6B Shift Into Cryptocurrencies Analysts pointed to a confluence of factors driving ￰4￱ inflows into Bitcoin funds have surged, friendlier policies under US President Donald Trump have helped sentiment and weakness in the US dollar has encouraged investors to ￰5￱ dollar index , which tracks the greenback against a basket of major currencies, held flat at 98.18 on Monday but remains down nearly 10% this ￰6￱ ongoing US government shutdown, now in its second week, has amplified the ￰7￱ lawmakers deadlocked and economic data releases delayed, investors have funneled more than $6b into cryptocurrencies in search of ￰8￱ has also rallied, topping $4,000 per ounce, strengthening Bitcoin’s narrative as “digital gold.” Spot Bitcoin ETFs Draw $3.24B As Supply Hits Six-Year Low Spot Bitcoin ETFs have been central to the ￰9￱ and Fidelity’s products drew $3.24b in net inflows last week, their second-highest tally since ￰10￱ exchanges are also reporting the lowest Bitcoin reserves in six years at just 2.83m coins, pointing to tightening supply that has magnified buying ￰11￱ Lee, chief analyst at Bitget, said Bitcoin could sustain its climb in the near ￰12￱ noted investors may see a test of $130,000 if ETF momentum continues to ￰13￱ also expects Ethereum to rebound toward the $4,800–$5,000 range on the back of Bitcoin’s strength and upcoming technical ￰14￱ participants stressed that the rally reflects both resilience and maturing integration with traditional finance.

“This rally highlights the sector’s resilience and the accelerating integration of crypto into traditional portfolios,” Lee added, pointing to institutional participation and innovation as key long-term ￰15￱ Supply At Multi-Year Lows Adds Pressure To Upside Momentum Others emphasized the cyclical nature of the ￰16￱ Thakral, CEO of BuyUcoin, said the pattern of capital rotation was typical. “Bitcoin’s rally is pretty normal early in a bull run as investors usually pile into Bitcoin first because it feels safer and more stable,” he ￰17￱ added that altcoins were likely to benefit once profit-taking sets in. “Alt season isn’t dead, just on ￰18￱ Bitcoin cools off and traders start taking profits, stronger altcoins like Ethereum, Solana, and Chainlink could ￰19￱ market’s not giving up on alts; it’s just getting smarter and focusing on real value instead of hype.” With supply at multi-year lows and inflows building, traders say the market backdrop favors further ￰20￱ levels around $117,300 are holding, and if momentum endures, Bitcoin could test new highs toward $140,000 in the coming weeks.