Bitcoin rose to $ 126,223 on Monday, marking another record when the US closure, softer dollar and rising ETF flow converged to tighten the supply and extend the rally.
From writing, cryptocurrency was nearing $ 124,000 and is based on a 15% weekly gain that has drawn Majors higher everywhere.
Elsewhere, Bitcoin has broken records in euros and Swiss Franc terms crossing EUR 106,000 and CHF 99,600, both in Japan. The New Prime Minister of the Asian country signalizes a return to Abenomics-style relief, which plays directly into the market’s tale of easier liquidity conditions in the future, as Coindesk’s Omkar Godbole noted on Monday.
The wider market picked up a bid for Bitcoin’s lead. Ether rose 4% to $ 4,700, the highest in three weeks, with dealers looking at the $ 4,800- $ 5,000 series whose momentum holds.
BNB remains the Outlier, which is more than 20% in the last week and sets fresh items over $ 1,240, a step that highlights rotation in ecosystem names when the basic asset has a bid. Dogecoin won 6% to $ 0.26, XRP crossed higher to almost $ 3 and Solana has added over 12% in the last seven days.
The breadth of this rally is remarkable. The total Crypto market value rose to $ 4.27 trillion before it eased slightly to $ 4.24 trillion. The sentiment index is at 71 (greed), close to levels last seen in August, but still shortly after euphoria. It gives way to expansion without any signs of a blow -up peak.
Etf-led rally
BTC’s steps to detect heights were not a gearing spik. Weekly Spot-ETF inflow crossed $ 3.2 billion, the highest since November 2024 and second largest on the record, pushing total allocations since January to more than $ 60 billion, according to Data Source Sosovalue.
This ETF-driven demand is repeated by some analysts.
“Bitcoin’s increase over $ 124,000, driven by $ 3.2 billion in Spot -Tf flow, emphasizes the elaboration of institutional beliefs and a mature market story,” Ryan Lee, chief analyst at Bitget, said in a note to Coindesk.
Meanwhile, FXPROS Alex Kibuptsikevich warned that long -term holders have been active sellers around these levels since July, which means the supply is waiting if demand breaks.
BTC’s exchange balances have fallen to a six-year low of 2.83 million BTC, with 170,000 withdrawn in the last month signalizing coins moving exchanges and into prolonged storage. It is the combination of stable ETF purchases and shrinkage of supply that apparently supports this step.
The lingering political uncertainty
The shutdown of the US government is entering its second week, which stops important economic releases and creates uncertainty about fiscal direction when investors seek clarity on growth.
Similar shutdowns have historically pushed capital against hard assets, such as gold and bitcoin, reflecting concern for political stability and its influence on FIAT or stock markets.
In 2013, BTC doubled almost through October when the Washington Gridlock caught on, while gold added more than 3% over the same period. The closure in 2018–19 was different – Bitcoin slipped approx. 10% over five weeks while gold hardly moved. The latest record height suggests that the market is following the 2013 pattern.
At the same time, the dollar is softened and removed a headwind for dollar-denomined assets, and the bond markets are starting to price a more cautious Federal Reserve.
Dealers are increasingly expecting a combination of weaker data printing and fiscal paralysis to encourage decision makers to take care of the rates or at least avoid further tightening.
For Bitcoin, it sounds like easier liquidity conditions in the future, with the kind of Dovish Bias that has historically accompanied larger upside races on the overall market.
As a neutral observer, $ 125,000 looks like a magnet and now a match line.
