BTC Market Cap Nears Records as BTC Closes in on Record Highs

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’s data revealed a surge of $1.6 billion in purchases and an increase in Coinbase’s premium by $92, indicating a US-led market.

• 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.

This price increase is a surprising result of the US government shut down and markets seeming to ignore it. Investors are becoming more uncertain as the federal agencies reduce staffing and release economic data is delayed.

Bitcoin, which has risen 8% in the past few months, is directly benefiting from the current conditions. Traders are positioning themselves around the absence of a clear direction for policy. In addition, the government shutdown complicated Federal Reserve decision-making since data on inflation and employment could be delayed.

Bitfinex analysts commented on Cointelegraph.

“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 referring to the US. “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 pressure to buy increases

Onchain confirmed that the demand surge was driven by high levels of interest. Analyst Maartunn noted An increase in taker purchases of $1.6billion over one hour on all exchanges.

However, it is worth noting that the Coinbase Premium GapAnalyst Burak Kesmeci said that the price differential between Coinbase Binance rose to $91.05. 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

Analysts expected Bitcoin to reach new highs in the next week. Jelle, a crypto 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 The stage at which this is “Phase 3 Price Discovery” Breakout phase: This is where the new highs of this cycle are set.

The Analyst Skew pointed out The analyst also highlighted the strong US inflows via Coinbase and large sell orders around $130,000. This is next major resistance. He also pointed out the US dollar inflows through Coinbase, and larger amounts. “risk-on” Binance’s positioning is important, as it stresses that BTC’s momentum will depend on the results of the next daily closes. 

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

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.