BTC nears record highs as total market cap peaks at $4.21T

Takeaways from the conference: 

• Bitcoin surged by 14% over a seven-day period, aiming for $124,000 in the midst of a US Government shutdown.

• Onchain data shows a $1.6bn surge in purchasing and Coinbase has a premium of $92, which indicates a US demand.

• Analysts predict that the price could reach its highest level next week.

BitcoinBTC() staged an intense rally in the last week. It climbed 14% from its range low of $108,600 on Friday to trade just a few dollars from $124,000. The surge in price could push Bitcoin to new territory, above $125,500. This is because the crypto market capitalization has surpassed $4.21 trillion.

The US Government Shutdown and the apparent indifference of markets to it is one surprising factor behind this rise. Investor uncertainty increases as federal agencies cut staff and delay economic data release.

Bitcoin is now up 8%, as traders have positioned themselves to take advantage of the uncertainty in policy. In addition, the government shutdown complicated Federal Reserve decision-making since data on inflation and employment could be delayed. This heightened speculative activity into cryptocurrency.

Bitfinex analysts commented to Cointelegraph about the comments.

“Bitcoin’s movement toward a new all-time high appears genuinely organic. We suspect that Trump’s announcement of potentially considering a stimulus cheque for every citizen, funded by tariffs, could also contribute to a further rise in Bitcoin’s price. This could mirror what we witnessed following the Covid stimulus cheques. Meanwhile, steady ETF inflows provide a clear tailwind.”

Analysts explained macroeconomic trends in the US by using the example of US macroeconomic conditions. “macro conditions remain supportive, with inflation easing and the Federal Reserve adopting a more dovish stance, which boosts appetite for risk assets. […] If inflows remain consistent and macro data does not deliver any upside surprises, the path toward more new all-time highs in Q4 appears well supported.”

Onchain BTC purchasing pressure increases

Onchain confirmed that the demand surge was driven by high levels of interest. Analyst Maartunn noted One hour saw a spike in taker purchases of $1.6billion across all exchanges.

Then, there is the Coinbase Premium GapThe price difference between Coinbase Binance has risen to $91.86. Burak Kesmeci, an analyst explained Coinbase is charging US investors nearly $92 extra per Bitcoin, which indicates a high demand for Bitcoin in the US. 

The premium is at its highest since the middle of August. Bullish momentum in this level has historically been tempered by 2025. 

Related: Bitcoin due for squeeze as record $88B open interest sparks ‘flush’ worries

Prices to be revealed next week

Price discovery is expected in the coming weeks, with Bitcoin nearing record levels. Jelle is a cryptocurrency trader noted,

“$120,000 being turned into support today. Hold it over the weekend, and I expect price discovery to resume as early as next week.”

Trader Rekt Capital described This stage is as “Phase 3 Price Discovery” Breakout phase: This is where the new highs of this cycle are set.

Analyse Skew pointed out While demand remains strong, the bulk of heavy selling orders are clustered around $130,000. That is where resistance will be found. He also pointed out the US dollar inflows from Coinbase, and other large exchanges. “risk-on” Binance’s positioning is important, as it stresses that BTC’s momentum will depend on the results of upcoming daily closures. 

Related: Stablecoins break $300B market cap, post 47% growth year-to-date

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.