By Anjali Sharma
WASHINGTON – Bitcoin, the world’s largest crypto currency by market value on Sunday set all-time high as it hit a record high and was up 2.7 per cent at USD 125,245.57, media reported.
The development came as a broader risk rally around the US government shutdown buoyed the world’s largest crypto currency.
Bitcoin’s previous record was USD 124,480 in mid-August, buoyed by friendlier regulations from the US President Donald Trump’s administration and strong demand from institutional investors.
The token climbed to as high as USD 125,689 on Sunday in Asia, supported by the uptick in US equities and renewed inflows into Bitcoin-linked exchange-traded funds.
Investors have speculated that the shutdown, which kicked in on Wednesday, will drive investors to safe-haven assets in what market participants have begun to call the debasement trade.
Bitcoin has been steadily rising for most of the past year as a result of the friendly legislative climate in Washington ushered in by President Trump, it said.
The US dollar retreated posting multi-week losses against major currencies, as uncertainty surrounding a US government shutdown clouded the outlook and delayed key data releases, such as payrolls, critical for gauging the economy’s direction.
Coin Market showed that the investors are holding the token, with trade volumes at USD 57.94 billion, down 29 per cent from the previous day.
CoinMarketCap’s analysis stated that sustained exchange-traded fund buying absorbs available supply and creates upward pressure.
Bitcoin’s market cap now rivals silver’s, reinforcing its “digital gold” narrative.
The analysis also noted that the surge in price could further fuel FOMO-driven buying toward USD 1,35,000 levels, but overextension raises correction risks.
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