ERBIL (Kurdistan24) – In a significant surge for the digital asset market, Bitcoin shattered its previous records on Sunday, climbing above the formidable $125,000 threshold for the first time. According to an AFP report, the world’s leading cryptocurrency’s powerful upward momentum is being fueled by a confluence of factors, including investor anxiety surrounding the ongoing United States government shutdown, a supportive environment from gains in traditional U.S. shares, and a dramatically altered political landscape in Washington that has embraced the crypto industry under President Donald Trump.

The cryptocurrency reached a peak of $125,689, as reported by AFP on Sunday morning from Tokyo. This new all-time high decisively pushes past the previous benchmark of approximately $124,500, which was set in August.

The recent rally demonstrates a sustained and robust confidence in the asset, continuing a period of strong performance that has captured the attention of global markets and solidified its position as a major player in the financial world.

A key driver behind this recent price explosion is the atmosphere of caution prevailing among investors due to the current political stalemate in the United States. With US lawmakers deadlocked in negotiations over funding for the federal government, the resulting shutdown has prompted a flight to what are often termed ‘safe haven assets.’

According to information from Bloomberg News cited in the AFP dispatch, investors are increasingly looking towards assets like Bitcoin to shield their wealth from the potential volatility and economic uncertainty stemming from the governmental disruption.

This search for stability outside of traditional government-backed financial systems has significantly bolstered Bitcoin’s appeal and, consequently, its market value, as market participants seek alternatives during times of political instability.

Beyond the immediate political crisis, the rally is also deeply rooted in a fundamental shift in the U.S. government’s posture towards the cryptocurrency industry. This change has been spearheaded by US President Donald Trump, whose administration has reversed years of skepticism that characterized the approach of his Democratic predecessor, Joe Biden.

The AFP report highlights that President Trump and his family have become prominent promoters of cryptocurrencies, with their personal involvement in various digital asset endeavors reportedly inflating the president’s own wealth.

This high-profile endorsement from the highest office in the nation has lent a new layer of legitimacy and encouragement to the once-marginalized sector, signaling a more welcoming regulatory future.

This pro-crypto sentiment has been translated into concrete legislative action, which has had a direct and profound impact on the market. In July, the US House of Representatives passed three landmark bills aimed at providing a clearer regulatory framework for digital assets.

The AFP report explicitly states that these regulatory changes have been a primary catalyst for the soaring value of Bitcoin. By moving to regulate rather than restrict the industry, the US government under Trump has unlocked a new wave of institutional and retail investment, creating a more favorable and predictable environment for growth.

This departure from the cautious and often adversarial stance of the previous administration has been interpreted by the market as a green light for expansion, directly contributing to the asset’s recent record-breaking performance.

The surge in Bitcoin is not occurring in a vacuum; it is part of a broader trend of asset inflation across various markets, with gains in US shares also cited as a supporting factor in its rise. This context was articulated by Joshua Lim, the co-head of markets at the crypto prime brokerage firm FalconX, in a statement quoted by Bloomberg News and included in the AFP report.

“With many assets including equities, gold and even collectibles like Pokemon cards hitting all time highs, it’s no surprise Bitcoin is benefiting from the dollar debasement narrative,” Lim explained. His analysis suggests that the current economic climate is pushing investors to seek returns in a wide array of assets, from the most traditional stocks and commodities to the most modern digital currencies.

In this environment, Bitcoin is seen not just as a speculative digital asset but as a viable hedge against traditional currency depreciation, a narrative that has clearly resonated with a growing number of investors and contributed to its monumental rise.