Bitcoin surged past the $120,000 mark per coin on Thursday, marking its highest point since mid-August. This rise coincided with the second day of the U.S. government shutdown and a renewed interest from investors in exchange-traded funds (ETFs), fueled by expectations that the Federal Reserve might soon lower interest rates.
According to CoinGecko data, Bitcoin’s value recently hit $120,286 after experiencing a 2% increase over 24 hours. Over the last week, this leading cryptocurrency has climbed nearly 8%, rebounding as investors seek refuge in safer assets amid market uncertainty. Gold prices have also reached new highs during this period.
The resurgence of Bitcoin comes as U.S. investors are once again showing strong interest in spot Bitcoin ETFs. On Wednesday alone, these funds attracted a substantial $675.8 million—their most significant influx since September 12.
Market analysts previously shared with Decrypt that despite being considered a “risk-on” asset similar to stocks, Bitcoin is exhibiting more independent movement patterns lately. Historically linked to U.S stock performance—especially tech stocks—Bitcoin has at times also mirrored gold’s behavior.
The less correlated Bitcoin becomes with other markets’ movements,the more appealing it appears for potential investors,Bloomberg’s ETF analyst Eric Balchunas explained to Decrypt.
The likelihood of an October rate cut has increased significantly accordingto experts who spoke withDecrypt, further enhancingthe appealofthis prominent digital currency.Bitcoin tends to perform wellin low-interest-rate environments.
Stereotypically,a challenging monthforbothstocksandcryptocurrencies alike Septemberhas often been followedbyastrongOctober rallydubbed”Uptober.”In nineoutofthepasttenyears,thistrendhasheldtrueforthecryptocurrencysector,anditseemstoberepeatingitselfonceagainintheearlydaysofthismonth,sayexpertsfrom Decrypt .
OtherdigitalassetsalsosawgainsalongsideBitcoinonThursday.Ethereumrecentlytradedat$4 ,407aftera3 %jumpwhileSolana’spricehoveredaround$226followingasimilar3 %riseduringthepastday .
Withpricesurginghigher , cryptotradersarebecomingmoreoptimisticaboutBitcoinachievinganewall-timehighsoon .
Currently,manyusersbelieveBTCstandsaneighty-onepercentchanceofreaching$125 ,000beforefallingto$105 ,000—afigurethatwouldsetanewrecordforthiscryptocurrency.Thisprobabilityhasincreasedbyfifteenpercentinthelasttwenty-fourhoursalone.(Note:MyriadisaDASTANproduct,parentcompanyof Decrypt )