Bitcoin surpassed the $125,000 mark for the first time, with the world’s oldest and most well-known cryptocurrency climbed to $125,426 on the Bitstamp trading platform on Sunday morning. Subsequently, the price was just below $125,000.

Large investors buy Bitcoin

According to experts, there are several reasons for the new all-time high. On one hand, more and more institutional investors are putting their money into Bitcoin, even though some early investors are cashing out and selling their Bitcoin holdings.

The Bitcoin price is also driven by expectations that the US Federal Reserve will further lower interest rates in the United States. The rationale is that with low interest rates for traditional investments, investors are more willing to take on higher risks and invest in Bitcoin.

Gold and digital gold

Alternative investments like Bitcoin, as well as traditional stores of value like gold, are also benefiting from political uncertainties in the US, which have arisen primarily due to the government shutdown.

Some analysts attribute the Bitcoin rally to historical chart analysis: For over a decade, October has been one of the strongest months in Bitcoin’s annual cycle. Since 2013, the price has only fallen during October in two years – 2014 and 2018 – which is why Bitcoin enthusiasts also refer to it as “Uptober.”

According to a report by CoinMarketCap, Bitcoin’s market capitalization is around $2.5 trillion following the recent price increase. Bitcoin thus continues to dominate the digital currency market, which currently has a total value of nearly $4.3 trillion.