Bitcoin soared to a new all-time high on Sunday, breaking past the $125,000 mark as safe-haven demand surged.The world’s largest cryptocurrency reached $125,689 in Asia, driven by investor concerns over the US government shutdown. The cryptocurrency smashed its previous record of $124,514 set on August 14, boosted by gains in US stocks and fresh inflows into Bitcoin-linked exchange-traded funds.Investors believe that the government shutdown, which began on Wednesday, could push money into safe-haven assets, a trend market participants are calling the “debasement trade.””With many assets including equities, gold and even collectibles like Pokemon cards hitting all time highs, it’s no surprise Bitcoin is benefitting from the dollar debasement narrative,” Joshua Lim, co-head of markets at crypto prime brokerage firm FalconX told Bloomberg.October is traditionally a strong month for Bitcoin, often referred to as “Uptober,” with the token gaining in nine of the past ten years. The surge this year has lifted Bitcoin’s value by more than 30%.The rise has also been fuelled by growing corporate adoption. Public companies, led by Michael Saylor’s Strategy, have been stockpiling Bitcoin, a move that has inspired other firms and even boosted interest in smaller digital assets like Ether.US equities hit record highs on Friday, driven by major artificial intelligence deals and partnerships, easing concerns about a prolonged shutdown and weak business activity.Meanwhile, treasuries and the dollar fell, and gold was on track for a seventh consecutive weekly gain, supported by central bank buying amid low interest rates and persistent inflation worries.”The shutdown matters this time around,” said Geoff Kendrick, global head of digital assets research at Standard Chartered Plc, as quoted by Bloomberg.He added that Bitcoin is likely to rise during this period and noted that the cryptocurrency was “in a different place” during the previous shutdown in 2018-2019, when it did not move in line with traditional risk assets.
The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.
Read more on The Times of India
