Bitcoin has passed $125,000 for the first time ever, setting a new record high on Monday, according to CoinMarketCap.
At the time of writing, the world’s biggest cryptocurrency is now trading around $123,847, down a modest 0.87% from the previous day. But prices on major exchanges such as Binance, Bybit, and Coinbase show Bitcoin moving between $125,034 and $125,077.
This rally seems to come as the U.S. dollar loses value. In addition to that, investors are reportedly turning to other assets that can bring in more profit.
Market experts from The Kobeissi Letter said this moment marks what they call a “generational macroeconomic shift.” They explained that many people are moving their money into assets like Bitcoin, gold, and stocks because the U.S. dollar is falling.
“There is a widespread rush into assets happening right now,” the analysts said. They added that inflation is rising again, the job market is slowing, and the U.S. Federal Reserve is cutting interest rates. These changes make Bitcoin and other assets more attractive to investors.
The report said the dollar is having its worst year since 1973 as it dropped more than 10% since January. It has also lost about 40% of its buying power since the year 2000. At the same time, the S&P 500 stock index has jumped more than 40% in six months, and gold is trading near $3,880 an ounce, also its highest ever.
Analysts pointed out that the link between gold and the S&P 500 reached a record level in 2024, showing that both “safe” and “risky” assets are rising together. This, they said, shows markets are adjusting to a new kind of monetary policy.
Fabian Dori, chief investment officer at digital asset bank Sygnum, said Bitcoin’s rise is also linked to the recent U.S. government shutdown. Many government offices have closed or are running with very limited staff, creating more concern about the dollar and the economy. Meanwhile, new crypto exchange-traded funds (ETFs) and lower interest rates have brought more investors into Bitcoin.
Meanwhile, Standard Chartered’s Geoff Kendrick believes Bitcoin could soon pass $135,000 as more medium-sized holders buy in. Bitcoin’s share of the total crypto market has now gone above 55%, showing it is still the main force in digital assets.
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