Bitcoin surged past $125,000 over the weekend, reaching a new all time high of $125,600 during early trading hours in Asia. The rally comes amid growing investor concerns over a potential U.S. government shutdown and continued weakness in the U.S. dollar.
The digital asset has now surpassed its previous peak from mid August, as market participants increasingly seek alternatives to traditional assets. The political deadlock in Washington, which has led to the suspension of federal services, is amplifying fears of fiscal instability and pushing capital into perceived safe havens.
Bitcoin has gained over 30% year to date, driven largely by institutional inflows from pension funds and asset managers. The current U.S. political environment, seen as more favorable toward digital assets, has also contributed to the bullish momentum.
Earlier this year, Bitcoin faced significant volatility amid escalating trade tensions under President Donald Trump. The cryptocurrency briefly fell below $80,000 in April, but rebounded quickly after the administration paused several import tariffs to allow room for renewed trade negotiations.