Bitcoin reached a new all-time high this past weekend, leading analysts to predict a renewed accumulation phase that could drive the price up to $150,000 by year’s end.
Bitcoin (BTC) hit a record high of over $125,700, with its market capitalization briefly surpassing $2.5 trillion for the very first time in cryptocurrency history, as reported by Cointelegraph earlier on Sunday.
This rally was fueled by various macroeconomic factors, including the recent US government shutdown — the first since 2018 — which analysts believe has rekindled interest in Bitcoin’s role as a store of value.
According to Fabian Dori, chief investment officer at digital asset banking group Sygnum Bank, past instances of similar conditions have often led to “major price milestones.”
The US government shutdown has “revived discussions around Bitcoin’s role as a store of value, as political instability highlights the appeal of decentralized assets,” Dori told Cointelegraph. “Additionally, the broader environment — featuring relaxed liquidity conditions, a service-led business cycle acceleration, and diminishing underperformance in comparison to equities and gold — has drawn focus to digital assets,” he noted.
However, the overall impact of the government shutdown on the crypto market will ultimately hinge on how it affects the US Federal Reserve’s stance on interest rates, Jake Kennis, senior research analyst at Nansen, informed Cointelegraph.
“The crypto markets could see advantages from a resolution of the shutdown if it reduces uncertainty and encourages a more dovish approach from the Fed,” Kennis remarked.
While some analysts interpret the government shutdown as a potential indicator of a crypto market bottom, Kennis believes it’s “too soon to label this as a local market bottom,” noting that confirmation would necessitate “multi-week stability above key support levels.”
Related: Bitcoin ETFs ignite ‘Uptober’ with $3.2B in the second-best week recorded
Bitcoin enters a new accumulation phase
Several analysts consider Bitcoin’s recent surge as evidence of a fresh accumulation phase by significant players, with on-chain data indicating reduced selling pressure from whales.
“Market data suggests that the current price movement may be associated with an accumulation phase,” stated Sygnum Bank’s Dori.
“Selling pressure from long-term investors seems to be decreasing, while short-term investors are showing signs of stabilization following a period of losses.”
Historically, phases of “cooled speculative activity and steadier positioning” have preceded major Bitcoin rallies, he added.
Related: Crypto trader transforms $3K into $2M after CZ’s post sends a memecoin skyrocketing
In addition, Bitcoin’s open interest “reset sharply” after last week’s options expiry, potentially “setting the stage” for Q4, according to blockchain data platform Glassnode.
A slowdown in speculative activity may draw more attention to Bitcoin, bolstering analyst forecasts of a breakout to $150,000 in Q4 2025, provided BTC can maintain its momentum above the crucial $120,000 psychological mark, commented Charles Edwards to Cointelegraph at Token2049.
Magazine: Bitcoin expected to experience ‘one more big thrust’ to $150K, ETH pressure builds
