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 data shows a $1.6bn surge in purchasing and Coinbase’s premium difference 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 the previous Friday, has risen 14% in one week. 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, 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 decisions as data on inflation and employment could be postponed. This increased speculation into crypto.

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 A spike in taker purchases of $1.6billion across all exchanges occurred within an hour.

Although the ‘additional expense’ is a concern, Coinbase Premium GapAnalyst Burak Kesmeci said that the price differential between Coinbase Binance rose to $91.05. Burak Kesmeci, an analyst explained Coinbase reports that US investors pay nearly $92 per Bitcoin more than they did in the past, indicating a strong demand from US buyers. 

The premium is at its highest since the middle of August. Bullish momentum in this level has historically been 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 next few days, 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 The stage at which this is “Phase 3 Price Discovery” Breakout phase: This is where the new highs of this cycle are set.

Analyse 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. Analysts also noted the large US inflows through Coinbase. “risk-on” Binance is a key player in the positioning of BTC, with the daily closings to be crucial for 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. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.