Bitcoin Hits New Record Above $125,000
Bitcoin reached a new all-time high above $125,000 on Monday, according to CoinMarketCap. At the time of writing, it trades near $123,847, down 0.87% from the previous day. Prices on major exchanges like Binance, Bybit, and Coinbase range between $125,034 and $125,077.
Market Factors Behind Bitcoin’s Rally
The recent surge in Bitcoin’s price coincides with a weakening U.S. dollar. Investors are shifting funds into assets that offer better returns. Experts from The Kobeissi Letter describe this as a “generational macroeconomic shift.”
They note rising inflation, a slowing job market, and Federal Reserve interest rate cuts. These factors make Bitcoin, gold, and stocks more attractive to investors.
The report highlights that the U.S. dollar is having its worst year since 1973, dropping over 10% since January. It has lost about 40% of its buying power since 2000. Meanwhile, the S&P 500 has risen more than 40% in six months, and gold trades near $3,880 per ounce, its highest level.
Analysts observe a record correlation between gold and the S&P 500 in 2024. This suggests both “safe” and “risky” assets are rising together amid new monetary policies.
Expert Views on Bitcoin’s Future
Fabian Dori, chief investment officer at digital asset bank Sygnum, links Bitcoin’s rise to the recent U.S. government shutdown. Limited government operations have increased concerns about the dollar and the economy. New crypto ETFs and lower interest rates have also attracted more Bitcoin investors.
Geoff Kendrick from Standard Chartered expects Bitcoin to surpass $135,000 soon. He notes that medium-sized holders are increasing their positions. Bitcoin’s market share has risen above 55%, maintaining its dominance in the crypto sector.
Source: CoinMarketCap
