Bitcoin crosses $126,000: Why BTC hit a new all-time high this week
Bitcoin (BTC) breached $126,100 for the first time in history on Oct. 6, climbing 2.5% in 24 hours as record institutional demand and macroeconomic uncertainty converged to push it to new highs.
Bitcoin has since retraced to $123,500, sitting around the previous all-time high, which now acts as a support for the uptrend.
The rally followed $3.55 billion in net inflows into US spot Bitcoin exchange-traded funds (ETFs) last week, part of nearly $6 billion in total crypto inflows that tightened available supply and supported prices.
The heavy institutional buying through regulated products removed bitcoin from circulation, creating upward pressure on spot markets.
Macroeconomic factors amplified the move as a US government shutdown steered investors toward perceived hedges like Bitcoin and gold.
The shutdown concerns elevated Bitcoin’s appeal as a safe-haven asset alongside traditional defensive positions, while the strength of equity futures and broader risk appetite provided additional tailwinds.
Traders await the Federal Reserve’s communications later this month for confirmation of a more dovish monetary policy path, which could further support risk assets, including cryptocurrencies.
Ethereum crossed $4,700 alongside Bitcoin’s advance, trading at $4,643.91 at press time, up 11% in the past week. The broader crypto market posted gains across major assets as the bitcoin rally lifted sentiment.
BNB peaked at $1,243, up 4.1% in 24 hours. Cardano gained 5.2% to reach $0.8783, while XRP advanced 3% to $3.04. Solana climbed 3.7% to $236.30. Dogecoin posted strong gains among major crypto, jumping 6.1% to $0.2687.
The convergence of institutional demand through ETFs, macroeconomic uncertainty driving safe-haven flows, and positive risk sentiment in traditional markets created conditions for Bitcoin to break through the $126,000 threshold.
The post Bitcoin crosses $126,000: Why BTC hit a new all-time high this week appeared first on CryptoSlate.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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