Bitcoin It rose to $126,223 on Monday, marking another record as the US shutdown, softer dollars and surgent ETF inflows converged, tightening supply and extending rally.
At the time of writing, cryptocurrency has traded nearly $124,000, earning 15% per week, surpassing the majors with all.
Elsewhere, Bitcoin has broken records on the terms of the euro and Swiss franc, and has also seen Japan’s 106,000 euros and CHF of over 99,600. The new prime ministers of Asian countries have shown a return to mitigation of Abenomics style. The Abenomics style mitigation will directly affect the market narrative of easy conditions for future liquidity, as Koindsk’s Omkar Godball pointed out on Monday.
The broader market received bids following the Bitcoin lead. Ether surged 4% to $4,700, the highest in three weeks, with traders looking at the $4,800-5,000 range if momentum hits.
BNB remains an outlier, rising by more than 20% over the past week, setting a new record above $1,240. This is a move that emphasizes the rotation to the ecosystem name when there is a bid on the base asset. Dogecoin has risen 6% to $0.26, while XRP has risen to nearly $3, while Solana has added over 12% over the past seven days.
The breadth of this meeting is remarkable. Crypto’s total market capitalization rose to $4.27 trillion, then only $4.24 trillion. The sentiment index is 71 (greed), close to the level we saw last in August, but it’s still not enough euphoria. It leaves room for extension without any signs of blow-off top.
ETF-led rally
The move to record highs in BTC was not a leverage-driven spike. According to Data Source SosoValue, weekly SpotETF inflows exceeded $3.2 billion, the second largest since November 2024 and the second largest since January, pushing the total allocation since January to over $60 billion.
This ETF-led demand has been reflected by some analysts.
In a note to Coindesk, Bitget chief analyst Ryan Lee said:
Meanwhile, FXPro’s Alex Kuptsikevich warned that long-term holders are active sellers at these levels since July.
BTC exchange balances fell to 283 million BTC for the first time in six years, with 170,000 withdrawals in the past month, and coins have been removed from the exchange and moved to long-term storage. What appears to support this movement is a combination of stable ETF purchases and reduced supply.
Prolonged political uncertainty
The US government closure is now in its second week, with investors halting key economic releases and creating uncertainty about financial directions to help them clarify growth.
Similar closures have historically tweaked capital for hard assets such as gold and Bitcoin, reflecting concerns about political stability and impact on Fiat or the stock market.
In 2013, BTC almost doubled until October as the Washington Gridlock lasted, but Gold added over 3% over the same period. The closures in 2018–19 were different. Bitcoin slipped about 10% in five weeks, but gold was barely moving. The latest record highs suggest that the market follows the 2013 pattern.
At the same time, the dollar has softened, and the dollar has removed headwinds in sectarian assets, and the bond market is beginning to set more cautious Federal Reserve prices.
Traders are increasingly hoping that the combination of weaker data prints and financial paralysis will encourage policymakers to step into the rates carefully, or at least avoid further tightening.
For Bitcoin, it has been read as an easy liquidity condition first and has historically had a major upward drive across the market.
As a neutral observer, $125,000 is a magnet and now looks like a battle line.