Bitcoin climbs past $125,000 for first time as institutional investors drive global rally
Bitcoin has soared to a new all-time record high, climbing above $125,000 for the first time as investor confidence and institutional demand continue to fuel its rally under what analysts describe as “friendlier Trump-era policies.”
The world’s largest cryptocurrency by market value rose as high as $125,835.92 on Monday before easing slightly to $125,253.63, still up 2.02% for the day. It has now gained more than 33% since the start of 2025, maintaining its position as one of the year’s best-performing assets.
The latest surge has been driven by a combination of increasing institutional participation, growing integration with mainstream financial systems, and the weakening of the US dollar, analysts say.
“Bitcoin is the hurdle rate. If you can’t beat it, you have to buy it,” wrote Anthony Pompliano, founder and CEO of Professional Capital Management, in a letter to investors on Monday. “I think the next 12 weeks are going to be very fun for bitcoin holders.”
The cryptocurrency’s rally began accelerating late last month when it briefly dipped below $110,000 before rebounding sharply. Since September 28, bitcoin has added roughly 13%, with momentum continuing through early October.
Market analysts attribute much of the optimism to the current pro-market tone of the Trump administration, which has eased regulatory concerns and encouraged major investment firms to deepen their crypto exposure. Several high-profile funds have expanded bitcoin holdings amid expectations that looser capital gains rules and reduced corporate taxes could bolster digital asset profitability.
Embed from Getty Images
“Bitcoin’s ascent reflects a global diversification trend,” said David Morrison, senior market analyst at Trade Nation, a UK-based fintech and financial services provider. “The U.S. dollar’s weakness, combined with ongoing uncertainty over tariffs and trade policy, has made bitcoin increasingly attractive as a hedge.”
The U.S. dollar index, which measures the greenback against a basket of major currencies including the yen and euro, was flat at 98.09 on Monday. It has fallen nearly 10% this year, largely due to investor concerns about trade disruptions following new tariffs imposed on key U.S. partners.
According to Morrison, bitcoin’s MACD (Moving Average Convergence Divergence) — a widely tracked technical indicator — has “turned up sharply,” signalling a rise in upside momentum. “While this suggests further strength ahead,” he added, “bitcoin may need to consolidate before attempting another push higher.”
Bitcoin’s continued climb has also coincided with increased optimism in broader crypto markets. Ethereum, the second-largest cryptocurrency by market value, traded near $3,900, while Solana and Avalanche recorded modest gains. Analysts believe renewed institutional inflows, including from pension and sovereign wealth funds, are reinforcing the market’s long-term bullish outlook.
Despite bitcoin’s record price, some analysts warn of possible volatility as the market approaches what they call an “overbought” phase. Recent on-chain data shows a surge in leveraged positions on major exchanges, which could amplify both gains and corrections in the weeks ahead.
Still, bitcoin’s sustained momentum underlines its growing role as a mainstream financial asset, less isolated from traditional markets than in previous cycles. For investors, its appeal remains twofold: protection against fiat depreciation and exposure to rapid technological innovation in digital finance.
As one analyst put it, bitcoin’s latest milestone marks not only a new price record but a symbolic shift in perception — from speculative instrument to institutional-grade asset. Whether the cryptocurrency consolidates or climbs higher, its rise above $125,000 signals that digital currencies are no longer peripheral players in global finance, but central to its evolution.