Bitcoin Surpasses $125K as Spot ETFs See $3.24B Inflows

Bitcoin (BTC) surged to a record high above $125,000 on Sunday, extending its weekly gain to 11%, according to CoinDesk data. The rally coincided with a massive surge in demand for U.S.-listed spot exchange-traded funds (ETFs), which recorded a net inflow of $3.24 billion for the week ended Oct. 3—marking the second-largest weekly inflow on record, according to SoSoValue.

Other major cryptocurrencies, including Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE), also followed Bitcoin’s lead, posting gains between 1% and 3% during Asian trading hours.

Safe-Haven Demand Amid U.S. Government Shutdown
Bitcoin’s rally comes as the U.S. continues to experience a government shutdown, which analysts say has boosted safe-haven demand for the world’s largest cryptocurrency.

Jeff Dorman, Chief Investment Officer at Arca, noted just before the shutdown began:
“The only time I buy BTC is when society loses faith in governments and local banks. BTC is likely a good buy here ahead of yet another U.S. government shutdown.”

Macroeconomic Drivers Supporting BTC
Beyond political uncertainty, macroeconomic factors are also contributing to Bitcoin’s upward momentum. Noelle Acheson, author of the Crypto Is Macro Now newsletter, explained:
“With rising risks of new conflicts, potential US inflation pressures, increased global borrowing, and currency concerns, what benefits gold also benefits BTC, especially since it remains under-allocated.”

She added, “Incoming measures like lower rates, yield curve control, and expansive liquidity will flow into the riskier corners of institutional portfolios, supporting Bitcoin and other digital assets.”

Looking Ahead
With seasonal trends favoring crypto in October, Bitcoin appears poised to continue its upward trajectory. At the time of writing, BTC was trading around $124,080, according to CoinDesk data.