Bitcoin reached a new all-time high on Sunday, trading over $125,000 in Asian hours as markets continued to gain in October. Reports indicate that the token increased by about 2.7% to approximately $125,245 on the day, surpassing its previous peak in August of around $124,480.
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Institutional Flows And Political Signals
According to reports, a significant surge in demand through US-listed spot Bitcoin ETFs has fueled this rise, with weekly net inflows into those funds estimated at around $3.24 billion.
Traders and investors indicated that a weaker US dollar and stronger equity markets have also contributed to pushing prices higher. Some analyses have linked the change in sentiment to policy signals from US President Donald Trump, alongside concerns regarding a potential US government shutdown nudging buyers towards alternative assets.
Traders See ‘Uptober’ Playing Out
“Uptober” — a term referring to October’s typically bullish period — has made a comeback this year, with traders noting that technical breakouts after Bitcoin turned $120,000 into support have provided additional momentum.
Reports indicate BTC briefly reached as high as $125,750 during early Asian trading before pulling back, suggesting rapid buying followed by profit-taking in some venues.
Bitcoin Prices: This cryptocurrency surges to all-time high past USD 125K; Here’s whyhttps://t.co/A1RxGUwdGb
— ET NOW (@ETNOWlive) October 5, 2025
Liquidity Tightening On Exchanges
Reports suggest that the amount of Bitcoin on centralized exchanges has decreased, limiting the readily available supply for sellers when buyers enter the market.
This reduced supply, combined with new ETF demand, creates conditions for more volatile price movements when flows increase. Market analysts warn that such trends can lead to amplified price swings in both directions.
What Analysts And Traders Are Watching
Options traders and chart analysts are identifying near-term resistance levels above current peaks, while some technical indicators suggest larger price targets in the coming months — figures like $135,000 have been mentioned by certain market players, though these are projections rather than guarantees. Volume and fund flows will likely influence whether the rally sustains or cools off.
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What Comes Next
Analysts note that this run is significant as it has re-established Bitcoin in discussions alongside key asset classes, and at times, the token’s market value has surpassed that of Amazon on some measures.
However, volatility remains high. Sudden reversals, changes in policy, or shifts in ETF flows could quickly change the landscape.
A blend of institutional buying, seasonal trends, and macroeconomic factors have propelled Bitcoin to new heights. This rally has attracted renewed interest from investors, but it also comes with the typical risks associated with significant price fluctuations.
Markets will continue to monitor flows, dollar movements, and any policy updates from Washington for insights on what may come next.
Featured image from Pixabay, chart from TradingView
