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

The key takeaways 

• Bitcoin has risen 14% within a week and is now aiming at $124,000, amid the 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 expect price to reach $130,000 next week.

BitcoinBTCThe price of, which was trading at a low around $108,600 Friday last week, has risen 14% in the past seven days. 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. This government shutdown also complicated Federal Reserve decisions, as inflation and job data may be delayed. This increased speculative flow 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.”

The analysts explained this by referring to macroeconomic conditions of 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 data confirms that demand is driving the increase. Analyst Maartunn noted A spike in taker purchases of $1.6billion across all exchanges occurred within an hour.

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 typically cooled 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.

The Analyst 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 is a key player in the positioning of BTC, with upcoming closes being critical to confirming if BTC will continue its momentum. 

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

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.