Bitcoin, the world’s largest cryptocurrency, shattered records on October 5, 2025, surging to a new all-time high above 125,000 US dollars in Asian trading—before swiftly correcting below 123,000 dollars as the week drew to a close. According to KTSG Online and Cointelegraph, the digital asset peaked at 125,689 dollars, marking a milestone that surpassed its previous high from mid-August. By 2:30 p.m. Vietnam time, Bitcoin settled around 124,700 dollars, still boasting a staggering market capitalization of roughly 2.485 trillion dollars. That’s a figure that now eclipses the market value of corporate titans like Amazon and Meta, the parent company of Facebook.
The rise wasn’t limited to Bitcoin alone. Other prominent cryptocurrencies, including Ripple (XRP), Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE), also saw their prices rise by 1-3% during the same Asian session, as reported by CoinDesk. The bullish momentum in the crypto space was fueled by a blend of macroeconomic expectations, technical market dynamics, and the growing participation of institutional investors.
What’s behind this dramatic ascent? Market analysts point to a confluence of factors. One crucial driver is the anticipation of a more accommodative policy stance from the US government under President Donald Trump. There’s also the expectation that the US Federal Reserve will cut interest rates twice this year, each by 0.25 percentage points. Lower interest rates typically make borrowing cheaper, enticing investors to seek higher returns in riskier assets—cryptocurrencies among them. As Joshua Lim, co-head of markets at FalconX, put it to KTSG Online, “Bitcoin is benefiting from the story of a weakening US dollar and an upcoming low interest rate environment.”
Indeed, the US dollar weakened against major currencies over the weekend of October 3-4, 2025, a reversal that coincided with Bitcoin’s upward move. This inverse relationship is nothing new, but it has become more pronounced as investors search for alternatives to traditional assets amid economic uncertainty. Geoff Kendrick, head of digital asset research at Standard Chartered, told KTSG Online that, “Compared to the government shutdown period of 2018-2019, Bitcoin is now in a different position, no longer moving in lockstep with traditional risky assets.”
Yet, the weekend’s price action wasn’t without turbulence. As Cointelegraph and TradingView data show, Bitcoin’s rally above 125,000 dollars was quickly followed by a retreat below 123,000 dollars during the Sunday trading session. Analysts attributed this volatility to thin market liquidity, which is typical during weekends, and the influence of derivative trades and accumulated short positions at elevated price levels. “The key resistance is at 124,000 dollars,” noted renowned trader and analyst Rekt Capital on X (formerly Twitter). “Bitcoin needs to prove that the 124,000 dollar area is weakening as resistance. Any shallow correction from here would confirm that.”
Historically, Bitcoin has often been rejected at major resistance levels on the first attempt, with previous rejections around 124,000 dollars resulting in corrections of up to 13%. However, this time, analysts like Rekt Capital believe that even a modest 4% decline would not disrupt the broader weekly uptrend, provided the 124,000 dollar resistance becomes less formidable. The closest technical support, widely watched by traders, is the 50-period Exponential Moving Average (EMA) on the 4-hour chart, currently hovering just above 118,000 dollars. As trader CrypNuevo observed, prices are currently stretched above this EMA, and a retest could set the stage for another leg up—assuming the support holds.
This pattern of sharp rallies, shallow pullbacks, and persistent buying pressure is often seen as a hallmark of institutional involvement. Caleb Franzen, founder of Cubic Analytics, remarked on X, “When I see short-term volatility like this, with hardly any corrections and strong buying after breakouts, I see the footprints of institutions.” This disciplined accumulation aligns with a broader macro trend: professional investors are increasingly seeking hedges against the risk of fiat currency debasement, or the erosion of purchasing power due to inflation and monetary expansion.
The so-called “debasement trade” has become a buzzword among market participants in 2025. As explained by Cointelegraph—citing analysts from JPMorgan—the term describes a strategy of buying scarce assets like Bitcoin to protect against the declining value of traditional currencies. With inflation fears lingering and central banks signaling looser monetary policy, Bitcoin’s fixed supply and decentralized nature have made it an attractive alternative for both individual and institutional investors. This narrative, combined with strong inflows from large investors, has helped propel Bitcoin to its historic highs.
Still, not everyone is convinced that the rally is built on solid ground. The weekend’s thin liquidity and the prevalence of large orders make it easier for prices to swing sharply in both directions—a phenomenon well documented in market research by firms like Kaiko. Weekend trading sessions are notorious for their volatility, with frequent liquidity “sweeps” occurring before the market establishes a clear direction when regular volume returns at the start of the week. As trader Skew pointed out, many passive short positions were opened at high levels, betting that the weekend price surge was merely a trap for overzealous buyers.
Despite these risks, the underlying trend remains robust. Analysts believe that as long as Bitcoin holds above key support levels—especially the 118,000 dollar EMA on the 4-hour chart—the path of least resistance is still upward. The absence of deep corrections and the sustained presence of strong buying after each breakout suggest that large, disciplined players are accumulating positions, rather than retail traders chasing quick profits. As Caleb Franzen summarized, “These patterns usually appear when institutions are involved with clear trading discipline.”
Looking ahead, the market’s focus will remain on whether Bitcoin can decisively overcome the 124,000 dollar resistance and establish new highs. A shallow pullback followed by a breakout would signal that the former resistance has turned into support—a classic bullish indicator. Conversely, a deeper correction toward the 118,000 dollar EMA could offer another buying opportunity for those betting on the long-term uptrend.
For now, Bitcoin’s record-breaking rally is a testament to its growing stature in the global financial system. With a market capitalization that now rivals—and even surpasses—some of the world’s largest corporations, and with institutional investors increasingly viewing it as a hedge against economic uncertainty, Bitcoin’s latest surge is more than just a speculative frenzy. It’s a reflection of shifting attitudes toward money, risk, and the future of finance.
If this weekend’s action is any guide, the coming weeks promise to be just as unpredictable—and potentially just as historic—for the cryptocurrency market.
