Bitcoin surged to a new all-time high on Sunday, crossing the $125,000 mark as investors turned to digital assets for stability during the ongoing US government shutdown and rising global inflation fears.
The world’s largest cryptocurrency hit $125,689, surpassing its previous August peak of $124,500, according to market data. The rally comes as investors diversify away from traditional markets, encouraged by strong gains in US equities and a renewed appetite for safe-haven assets.
Market analysts attribute the momentum to a combination of policy optimism and macroeconomic uncertainty. The pro-crypto stance of US President Donald Trump’s administration continues to bolster sentiment, particularly after the US House of Representatives approved three major cryptocurrency bills in July, a move widely interpreted as a turning point for institutional adoption.
“Policy clarity in the US has removed a major overhang on the market,” said one Dubai-based crypto analyst. “Institutional investors now view Bitcoin as a hedge against inflation and political risk.”
The sustained rise reflects a broader shift in global investment behaviour, with traders betting that Bitcoin’s limited supply and growing acceptance will support higher valuations. Analysts believe that continued economic strain, currency devaluations, and fiscal uncertainty could keep driving capital into digital assets over the coming months.
While the latest surge has reignited enthusiasm among investors, some experts warn that volatility remains high and that regulatory decisions in the US and Europe will continue to influence short-term trends. For now, however, Bitcoin’s momentum underscores the increasing role of cryptocurrencies as part of the mainstream financial landscape.
