CMC News

$BTC Breaks $125K Record as Government Shutdown Fuels Rally

$BTC surged past $125,000 for the first time in its history during Asian market hours. The leading cryptocurrency reached this milestone amid nearly $50 billion in 24-hour trading volume.

Short positions faced significant liquidations as #bullish momentum accelerated. Almost $100 million in #shorts were liquidated within a single hour, while over $200 million in short positions became forced buyers across the 24-hour period.

Favorable macroeconomic conditions combined with rising institutional demand have fueled $BTC's 2025 performance. Joe DiPasquale, CEO of BitBull Capital, noted that the prolonged government shutdown continues to drive interest in hard assets, supporting demand for #Bitcoin as an alternative store of value.

The rally briefly stalled Friday afternoon in U.S. trading as traders took profits near the previous $124,128 peak. However, the breakthrough came as analysts maintained their bullish outlook for the asset.

Standard Chartered's Geoff Kendrick projects $BTC will reach at least $135,000 in the near term. The bank's global head of digital assets expects prices to surpass $200,000 before year-end.

Market capitalization briefly crossed the $2.5 trillion milestone for the first time. The U.S. government shutdown, the first since 2018, has renewed discussions around Bitcoin's role as a store of value amid political uncertainty, according to Fabian Dori, CIO at Sygnum Bank.

On-chain data suggests that declining selling pressure from whales signals a new #accumulation phase. Long-term holders appear to be easing selling pressure while short-term investors show stabilization after realized losses, potentially setting the stage for further gains.

Charles Edwards told reporters at #Token2049 that slowing speculative activity may reinforce predictions of a breakout to $150,000 in Q4 2025 if $BTC sustains momentum above the $120,000 psychological level.