Bitcoin (BTC) is riding a wave of bullish momentum, fueled by a mix of favorable macroeconomic factors, strong ETF inflows, and rising institutional demand. The world’s largest cryptocurrency surged to a new all-time high of $126,223 on Monday, signaling that “Uptober,” the market’s nickname for October’s bullish season, is once again living up to its reputation.
According to Jean-David Péquignot, Chief Commercial Officer at Deribit, Bitcoin’s rally is being driven by a “perfect storm of macroeconomic tailwinds,” including government spending concerns, dollar weakness, and investor demand for hard assets such as gold and BTC.
Bitcoin’s climb above $125,000 marks another major milestone for the asset as it continues to outperform global markets. Péquignot noted that the ongoing U.S. government shutdown risks and rising fiscal concerns have prompted investors to seek safety in alternative stores of value. “Debasement trades are favoring assets like Bitcoin,” he said, pointing to the growing appeal of BTC as a hedge against traditional financial instability.
At the same time, strong ETF inflows have further tightened the supply of available BTC on exchanges. As more institutions accumulate Bitcoin through exchange-traded funds, the circulating liquidity has decreased — creating what Péquignot described as a “self-reinforcing bull cycle.”
The U.S. dollar’s recent weakness has also played a role in amplifying gains. Bitcoin has not only reached new highs in dollar terms but also in euros and Swiss francs, surpassing 106,000 EUR and 99,642 CHF, respectively, according to TradingView data.
Bitcoin’s strength has lifted the broader crypto market. Ethereum (ETH) climbed 4% to around $4,700, marking its highest level in over three weeks. Other major altcoins also participated in the rally — Dogecoin (DOGE) and BNB, the native token of the Binance ecosystem, both gained around 6%.
The CoinDesk 20 Index, which tracks the largest and most traded digital assets, reflected this momentum with broad-based gains across most sectors.
Crypto-related equities showed mixed results on Monday. Galaxy Digital (GLXY) saw a 7% rise after unveiling GalaxyOne, a new trading platform aimed at competing with Robinhood. Meanwhile, Robinhood (HOOD) slipped 3% following the news, while Coinbase (COIN), Circle (CRCL), and MicroStrategy’s parent company Strategy (MTSR) each gained roughly 2%.
Mining stocks, however, stood out as the biggest winners. Companies like Marathon Digital (MARA), Riot Platforms (RIOT), and Cleanspark (CLSK) surged around 10%, buoyed by optimism surrounding data center expansion and fresh demand for AI-related infrastructure following OpenAI’s multibillion-dollar chip deal with AMD.
From a technical perspective, Bitcoin appears poised for further gains. Analysts at Deribit highlight a double-bottom breakout pattern, which typically signals the start of a strong bullish phase. Based on this pattern, BTC could reach $128,000–$130,000 in the near term, with the potential to extend toward $138,000 if momentum continues.
However, Péquignot cautioned that the market is currently in overbought territory, suggesting a short-term correction may be on the horizon. A brief retracement to the $118,000–$120,000 range would not be unexpected before the next leg higher.
Despite possible pullbacks, overall sentiment remains firmly positive. The combination of seasonal tailwinds, institutional inflows, and a tightening BTC supply continues to support a bullish outlook for Q4 2025.
With ETF participation growing and fewer coins available on exchanges, Bitcoin’s ongoing rally is underpinned by both macro and on-chain fundamentals. Investors appear to be positioning for further upside amid global uncertainty and increasing recognition of Bitcoin as a digital safe-haven asset.
If current conditions persist, analysts believe BTC could maintain its upward trajectory through October, potentially setting the stage for a move beyond $130,000 before the year’s end.
Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.
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