“Uptober” got off to a strong start. Bitcoin prices soared Friday afternoon, quickly surging from a price of about $120,000 to a recent high of $123,855, just shy of breaking the all-time price record.
Bitcoin was recently trading at $122,346 after giving up some of its gains. According to CoinGecko, the stock is up 1.3% on the day and is up over 11% in the last week.
The previous record was $124,128 in mid-August, according to CoinGecko. Friday’s surge marked the closest Bitcoin has come to reaching that level since then.
Bitcoin fell below $108,000 per coin in September as long-term holders took profits, ETF flows slowed and the largest digital coin began to show “signs of depletion,” according to analysts at Glassnode.
But October, dubbed Uptober by traders, started on a strong note. Nine out of the past ten years have been good years for cryptocurrencies.
Traders who bet on Bitcoin’s rise have come under fire over the past 24 hours, with $153 million worth of Bitcoin shorts extinguished during that period, according to CoinGlass. Overall, $499 million worth of crypto positions were liquidated in the past day, of which shorts accounted for $294 million worth.
Bitcoin’s rise also comes as gold and U.S. stocks soared on expectations that the U.S. Federal Reserve will cut interest rates again this month. The central bank is under pressure from President Donald Trump to lower borrowing costs this year.
Cryptocurrency markets and stocks have historically performed well in a low interest rate environment. experts have said before decryption The idea is that if interest rates fall, the price of BTC will be favorable.
“Bitcoin briefly tested all-time highs before retreating as traders took profit,” said Joe DiPasquale, CEO of crypto asset management firm Bitbull Capital. decryption. “The broader picture remains bullish, with an extended government shutdown likely to continue to drive interest in hard assets and support demand for Bitcoin as an alternative store of value.”
Bitcoin has soared this year on the back of the election victory and subsequent inauguration of President Trump, a cryptocurrency advocate. Republicans, who campaigned on a platform of supporting the industry, have pushed digital asset-friendly policies since taking office, including a strategic Bitcoin reserve plan.
Still, compared to past cycles, the price of BTC has not soared much since the quadrennial halving. As the market capitalization of the largest coins expands, much more cash is needed to move the price, and the cryptocurrency’s volatility has declined since the US Bitcoin ETF approval in 2024.
Both Bitcoin and gold have seen significant price increases since the US government shutdown began earlier this week.
“BTC’s appeal as a safe haven is not only more visible but also more deeply rooted, growing at the same time as trust in traditional financial institutions continues to erode,” said Stra Savinja, head of financial data and analysis at FRNT. decryption.