#BTC再创新高 On October 5, 2025, Beijing time, the price of Bitcoin broke through $125,000, reaching a maximum of $125,689, setting a new historical record since the previous record was established on August 14. This figure signifies a strong rebound for Bitcoin from its low of $76,300 at the beginning of the year, showcasing its remarkable resilience and market confidence. In the past 24 hours, the total liquidation in the crypto assets market reached $346 million, with over 118,000 people getting liquidated. This big pump was not driven by a single factor, but rather a "perfect storm" of multiple favorable information.

Multiple factors resonate to create the "perfect storm" for a price breakthrough.
"1 The US government shutdown and "devaluation trading"
The U.S. federal government has shut down since October 1 due to a lack of funds, marking the first government shutdown in seven years. This political crisis unexpectedly ignited bullish sentiment in the crypto market. Market participants refer to the U.S. government closure as a catalyst for "devaluation trades." As political and economic uncertainties increase, investors are shifting funds towards Bitcoin, gold, and other assets to hedge against the risk of dollar devaluation. Geoff Kendrick, Global Head of Digital Asset Research at Standard Chartered Bank, noted, "The impact of this U.S. government shutdown is significant." Unlike the government shutdown in 2018-2019, Bitcoin is now more correlated with traditional risk assets and directly benefits from this demand for safe-haven assets.
Institutional Funds: The "golden channel" of Bitcoin ETFs has provided additional momentum for price increases with continuous inflows into Bitcoin spot ETFs. Last week, these funds recorded a net inflow of $3.24 billion, marking the second-largest weekly inflow on record. These products make it easier for traditional investors to participate in Bitcoin investments, expanding the base of market participants. Since the beginning of 2025, inflows into Bitcoin ETFs have exceeded $1.5 billion. At the same time, the supply of BTC on exchanges has dropped to 1.8 million BTC, the lowest level since 2018, creating structural buying pressure.
Scarcity: The inherent scarcity of Bitcoin, the "digital gold" of the digital age, has always been one of its value supports. The latest halving in April 2024 will reduce the block reward from 6.25 BTC to 3.125 BTC, meaning the new Bitcoin supply is permanently reduced by 50%. As long-term holders increasingly tend to lock up their coins, the amount of Bitcoin available in the market shrinks relatively. When demand continues to rise while the effective supply grows slowly, prices are passively driven upwards. This combination of "insufficient supply + hunger for demand" can easily lead to price surges when market sentiment amplifies.
Market sentiment and seasonal factors
Market sentiment and technical indicators show that the current market is in the "greed" range. The Bitcoin Fear and Greed Index has reached 71, close to the "extreme greed" threshold. The price rise is not linear and is often driven by amplified emotions. When the Bitcoin price breaks through historical highs, it triggers the "price discovery" phase, where many old resistance zones turn into support zones, and the market structure is reconstructed.
Seasonal factors are also at play. In the past 10 Octobers, Bitcoin prices have risen in 9 months, a month that the market refers to as "Uptober", further reinforcing investors' bullish sentiment.
Under the friendly legislative environment created by the Trump administration, publicly traded companies led by Michael Saylor's MicroStrategy adopted a corporate strategy of accumulating Crypto Assets, boosting market demand.
This strategy has spread to competitors like Ethereum, driving a broad rise across the entire digital asset sector. The coupling of Crypto Assets with traditional financial markets has significantly increased. The price trend of Bitcoin is increasingly correlated with US stocks and A-shares, laying the foundation for cross-market sentiment transmission.
The global regulatory landscape is also showing a trend of "clarification". After the EU MiCA regulation comes into full effect at the end of 2024, it has prompted 65% of EU crypto assets companies to achieve compliance. With the passage of the US GENIUS Act, compliant capital is entering the market at an accelerated pace.
3 Future Outlook: Where is the next stop for Bitcoin?
Multiple financial institutions have provided optimistic predictions for the future of Bitcoin.
Citibank predicts that if ETF funds continue to flow in and adoption rates increase, Bitcoin is expected to rise to $135,000 by the end of the year, and in an optimistic scenario, it could reach $199,000.
Standard Chartered Bank also set a target price of $200,000 by the end of the fourth quarter.
The progress on the technical front has also brought new opportunities for Bitcoin. With the development of StarkWare Stwo validators and OP_CAT opcodes, the performance of the Bitcoin network is expected to see significant improvement. These technological upgrades will not only enhance transaction speed but also bring more application scenarios for Bitcoin.
Risk factors cannot be ignored either. From a technical perspective, there are a large number of short liquidation orders in the range of $122,000 to $125,000 above Bitcoin. The range below $115,000 to $118,000 is a dense area of high-leverage long positions held by retail investors, and a price fluctuation of 5% could trigger large-scale Get Liquidated.