Bitcoin, the world's last cryptocurrency (by value) on Sunday grew by nearly 2.7 per cent, crossing the $125k mark to hit $125,245.57 at 5:12 GMT (10:42 IST).
The cryptocurrency's rise—which began on Friday—is the eighth consecutive rise in recent times, owing to recent gains in US equities and renewed inflows into Bitcoin exchange-traded funds.
Bitcoin's previous record was $124,480 in mid-August this year, against which it has now grown by more than 30 per cent.
This bullish sentiment comes despite the US government shutdown from October 1 onwards, because unlike the last shutdown of 2018-19, this year, it "traded with ‘US government risks’, as best shown by its relationship to US treasury term premium", explained Geoff Kendrick, an analyst from Standard Chartered Plc, in a note to Yahoo Finance.
Another reason for the rise is Bitcoin's typical rise in October, which earned it the nickname 'Uptober'. The digital asset gained nine times out of the past 10 Octobers.
In contrast, the US dollar retreated on Friday, posting multi-week losses against major currencies as it has been affected by uncertainty over the US government shutdown, a Reuters report said.
This has led to investors rushing to cryptocurrencies and gold as hedges against the weakening dollar, which is typically called "debasement trade".
Can Bitcoin now hit the $150,000 mark?
If the typical Uptober pattern—as per which October delivers average gains of 21.8 per cent—repeats this year, Bitcoin could even cross the $150k mark, a Bitcoin Magazine report says.
The report added that though Bitcoin has traded sideways in recent months, key liquidity indicators suggest a breakout may be near.
"Global M2 growth, stablecoin supply trends, and gold’s rally—which Bitcoin has closely tracked with a 40-day lag—all point upward."