Bitcoin (BTC) experienced a significant surge during Sunday's Asian trading session, rapidly climbing from $122,000 to $124,289 within minutes, approaching the August record high of $124,429.
The breakthrough above $124,000 coincided with substantial demand for U.S.-listed spot Bitcoin ETFs, which recorded a collective net inflow of $3.24 billion last week. Data from SoSoValue indicates this represents the second-largest weekly inflow in history.
Other major cryptocurrencies including XRP, ETH, SOL, and DOGE followed Bitcoin's upward momentum, posting gains between 1% and 3% during Asian trading hours.
Safe-Haven Demand Drivers
Bitcoin's rally occurs amid the ongoing U.S. government shutdown, which analysts suggest has increased safe-haven demand for the leading cryptocurrency.
Jeff Dorman, Arca's Chief Investment Officer, commented prior to the shutdown: "I only purchase BTC when confidence in governments and local banks declines. $BTC appears positioned for growth ahead of another U.S. government shutdown."
Beyond political uncertainty, experts highlight significant macroeconomic factors fueling the rally.
Noelle Acheson, author of the Crypto Is Macro Now newsletter, explained: "In addition to escalating geopolitical risks, U.S. inflation trends favor increases over decreases, global borrowing growth amplifies currency concerns, and positive factors for gold similarly benefit BTC, particularly given its current under-allocation."
"Furthermore, anticipated market support measures - including rate reductions, yield curve management, and substantial monetary expansion - will enhance global liquidity, eventually flowing into higher-risk institutional portfolio segments," she added.
Bitcoin appears poised for substantial gains during October's historically bullish period. According to CoinDesk data, BTC was trading near $124,080 at publication time.