In a remarkable surge, Bitcoin (BTC) briefly surpassed the $125,000 mark on October 5, 2025, during Asian trading hours, setting a new all-time high before experiencing a slight pullback. The surge led to Bitcoin extending its weekly gain to 11% and making a new TH at $125,689. The rally was fueled by a combination of institutional investments, macroeconomic factors, and a surge in demand for U.S.-listed spot Bitcoin exchange-traded funds (ETFs).
Source: Trading View
Bitcoin’s meteoric rise and subsequent dip
The ‘Uptober rally’ could be partly attributed to a net inflow of $3.24 billion into U.S.-listed spot ETFs in the week ending October 3, marking the second-largest weekly inflow on record. However, the rally was short-lived, as Bitcoin’s price retreated approximately 4% from its peak. Analysts suggest that the price may find support around $120,000, but caution that a deeper correction could occur if the $115,000 level fails to hold.
The recent government shutdown, which started Wednesday, is prompting investors to flock to safe-haven assets, a movement dubbed the “debasement trade” by market watchers. “As stocks, gold, and even quirky assets like Pokémon cards surge to record highs, Bitcoin’s rally fits right into the growing belief that the dollar is losing value,” FalconX’s Joshua Lim told Bloomberg.
OKX Partner, Ted Pillows, gave his prediction, stating, “As long as BTC holds above the $124,500 level, the uptrend will continue…For a correction, Bitcoin needs to close below $124,000.”
At the time of publishing, Bitcoin was trading around ~$124,037.16 according to CoinMarketCap.com. Analyst Rekt Capital noted that Bitcoin’s rejection at the $124,000 level was expected, citing historical patterns where such rejections preceded significant corrections.
Crypto market adds $100 billion in 24 hours
While Bitcoin reached new heights, other major cryptocurrencies have also shown positive momentum. In fact, the entire cryptocurrency market added over $100 billion in the last 24 hours. The total market capitalization of all cryptocurrencies reached $4.22 trillion, while the total crypto market volume over the last 24 hours is $188.47 billion, which makes a 48.21% increase, according to CoinMarketCap data.
Ethereum has experienced a steady increase in value, benefiting from the overall bullish sentiment in the crypto market. ETH is trading at $4,529.21, up almost 10% last week. Solana’s high throughput and low transaction costs have made it a popular choice among developers and investors, contributing to its price appreciation, trading at $231.24, up 10.38%.