Bitcoin Skyrockets Past $125K as U.S. Shutdown Sparks Crypto Gold Rush

Bitcoin (BTC-USD) is back in the spotlight, smashing through $125,000 for the first time since August as Washington's government shutdown pushed investors into hard assets. The move, described by traders as part of the debasement trade, comes amid a broader rush for protection against policy paralysis and fiscal uncertainty. The world's largest cryptocurrency traded near $124,000 in early London hours on Monday, staying within striking distance of its record highs. Gold joined the flight to safety, crossing $3,900 an ounce for the first time ever, extending a months-long rally driven by weakening confidence in traditional currencies.

Institutional flows are reinforcing the rally. Investors poured $3.2 billion into a dozen U.S.-listed Bitcoin exchange-traded funds last weekthe second-largest haul since their 2024 debut. BlackRock's iShares Bitcoin Trust saw open interest surge to a record $49.8 billion, while combined exposure across Deribit and IBIT is approaching $80 billion, roughly ten times early-year levels. FalconX head of research David Lawant noted that derivatives and option flows are now shaping market price action more than ever, as positioning momentum amplifies spot volatility.

Technicians see the next resistance zone around $135,000, with $150,000 in sight if momentum holds, according to BTC Markets analyst Rachael Lucas. Yet leverage is building fastmeaning any abrupt reversal could unleash sharp swings. Options data shows over 60% of open interest sits in call positions, reflecting both strong conviction and elevated risk. Historically, Octoberdubbed Uptober by tradershas been Bitcoin's best month, averaging 22.5% returns over the past decade. Ether was steady at $4,560, while XRP hovered just under $3 in early trading.