Brett Sifling, wealth manager for Gerber Kawasaki Wealth & Investment Management, also weighed in on bitcoin’s current situation, emphasizing through emailed comments that “There are a few reasons why I think it’s building momentum.”

“Most recently, softer than expected U.S. jobs data (ADP numbers) has been connected to raising the odds of an October Fed rate cut,” he noted. “Lower rates means that risk-on assets like Bitcoin will generally be viewed favorably by market participants.”

“We continue to see solid demand for the spot ETFs and I think that is creating a nice support for Bitcoin to build on top of,” added Sifling.

“We’re also entering October, which in the crypto community is called, ‘Uptober’ as it’s been a seasonably favorable month for Bitcoin throughout its history,” he added.

“Given all these positives, along with the government shutdown, it makes sense to me that Bitcoin would be catching a bid and making new highs,” Sifling concluded.

Multiple Factors Drive Gains

One analyst in particular claimed that a range of bullish variables have been driving bitcoin’s latest gains.

“Bitcoin’s surge toward $124,000 reflects a mix of factors,” Joe DiPasquale, CEO of cryptocurrency hedge fund manager BitBull Capital, said via email.

“Strong inflows into spot ETFs and institutional demand are providing steady buying pressure, while expectations of Fed easing have boosted appetite for risk assets,” he added.

“At the same time, U.S. political uncertainty and supply constraints following the halving have reinforced the ‘digital gold’ narrative,” DiPasquale continued.

“With momentum traders piling in as Bitcoin nears its prior all-time high, the rally has become self-reinforcing.”

Strong US Demand

Julio Moreno, head of research for CryptoQuant, focused on the Coinbase Premium Index, defined as “The [percent] difference between Coinbase Pro price (USD pair) and Binance price(USDT pair),” as well as its implications for investor demand in the U.S.

The chart below helps illustrate these developments:

“This price upward movement has been mostly supported by a relatively higher investor demand in the US, as seen by an increasing Bitcoin price premium on Coinbase, which is at the highest level since June 7,” he said via Telegram.

“US investor demand is what typically drives Bitcoin price rallies during bull markets,” added Moreno.

A ‘Remarkable’ Situation

Tim Enneking, managing partner of Psalion, offered his two cents on bitcoin’s current situation, emphasizing how much it stands out.

“With the ever-growing number of companies, countries and other entities increasing their purchases of BTC, to say nothing of the fact that the United States may join the list of purchasers, what is remarkable about BTC almost hitting a new ATH is not that it is close to doing so, but that it still has not done so with all of the upside pressure!” he stated via email.

“After all, for most of this year, the number of BTC purchased by public institutions has significantly exceeded the number generated by miners,” he noted.

“Given such a supply-and-demand dynamic, the price really only has one direction to go.”