Bitcoin reached a new all-time high over the weekend, leading analysts to suggest a renewed accumulation phase that could escalate the price to $150,000 by year-end.
Bitcoin (BTC) achieved a new all-time high exceeding $125,700, with its market capitalization briefly surpassing the $2.5 trillion mark for the first time in cryptocurrency history, according to Cointelegraph’s report on Sunday.
This rally was bolstered by various macroeconomic factors, including the recent US government shutdown—the first since 2018—prompting some analysts to point to a revived interest in Bitcoin as a store of value.
Fabian Dori, chief investment officer at Sygnum Bank, noted that in the past, similar circumstances have resulted in “major price milestones.”
The US government shutdown has “reignited discussions around Bitcoin’s role as a store of value, highlighting the appeal of decentralized assets amid political turmoil,” Dori stated to Cointelegraph. “Concurrently, the wider environment—characterized by loose liquidity, a service-led boost in the business cycle, and diminishing underperformance compared to equities and gold—has drawn attention to digital assets,” he further explained.
However, the influence of the government shutdown on the crypto market will depend on its effect on the US Federal Reserve’s views regarding interest rate decisions, said Jake Kennis, senior research analyst at Nansen, in his remarks to Cointelegraph.
“Crypto markets might see a positive impact from a resolution to the shutdown if it alleviates uncertainty and encourages the Fed to adopt a more dovish approach,” Kennis added.
While some analysts interpreted the government shutdown as an indication of a possible bottom in the crypto market, Kennis asserted it’s “too early to declare this a local market bottom,” as confirmation necessitates “multi-week stability above key support levels.”
Related: Bitcoin ETFs ignite ‘Uptober’ with $3.2B in the second-best week recorded
Bitcoin enters new accumulation phase
Some analysts consider Bitcoin’s recent surge as indicative of a new accumulation phase driven by large entities, as on-chain data suggests a reduction in selling pressure from whales.
“Market data suggests that the current price actions could be associated with an accumulation phase,” Dori stated from Sygnum Bank.
“Selling pressure from long-term holders seems to be lessening, while short-term investors are showing signs of stabilizing after experiencing realized losses.”
Periods of “cooling speculative activity and steadier positioning” have historically preceded significant Bitcoin rallies, he noted.
Related: Crypto trader transforms $3K into $2M after a CZ post sends a memecoin soaring
Meanwhile, Bitcoin’s open interest has “reset sharply” following last week’s options expiry, which may “lay the groundwork” for the fourth quarter, according to blockchain data analytics platform Glassnode.
Reducing speculative activity may draw more attention to Bitcoin, reinforcing analysts’ forecasts of a potential surge to $150,000 in the fourth quarter of 2025, should BTC maintain its upward momentum above the critical $120,000 psychological threshold, Charles Edwards informed Cointelegraph at Token2049.
Magazine: Bitcoin is expected to see ‘one more big thrust’ to $150K, ETH pressure builds
