Bitcoin hits record high above $125,000 amid stock rally
Bitcoin surpassed $125,000 for the first time over the weekend, reaching a new all-time high on Monday. The cryptocurrency's surge has lifted related stocks, including mining companies and exchanges. Investors are citing strong risk appetite and hedging against geopolitical uncertainty as key drivers.
Bitcoin (BTCUSD) climbed above the closely watched $125,000 level over the weekend, marking its first time ever at that threshold, and hit another record high on Monday around $125,800. The digital asset was recently trading at $125,500, up 34% since the start of the year, though trailing gold's 50% return over the same period. This rally follows a breakout from a two-month descending channel last week, with the relative strength index confirming bullish momentum below its December peak.
The surge aligns with strong investor appetite for risk, as stocks approach records, and growing adoption of cryptocurrencies through new ETFs and financial services integration. Last week, bitcoin ETFs saw inflows of $3.2 billion, the second-highest since their January 2024 launch. Analysts at JP Morgan describe this as the 'debasement trade,' where bitcoin and gold serve as hedges against geopolitical uncertainty and high government debt. The crypto market's total capitalization exceeded $4.5 trillion.
Crypto-related stocks gained on Monday. Bitcoin treasury firm Strategy (MSTR), exchange Coinbase Global (COIN), and stablecoin issuer Circle (CRCL) rose at least 2%. Mining companies, including MARA Holdings (MARA) and Riot Platforms (RIOT), climbed around 4%. JPMorgan's Nikolaos Panigirtzoglou noted bitcoin's attractive pricing relative to gold after the metal's recent climb. Fundstrat's Sean Farrell suggested a potential rotation: "Gold looks stretched and crowded to me, while historical patterns suggest flows could rotate from analog gold into digital gold."
Technically, bars pattern analysis projects a possible move to $160,000 over 12 weeks. Key support levels to watch include $107,000 near the 50-week moving average, $92,000 at prior consolidation, and $74,000 aligning with March and April extremes. Spot crypto ETF approvals remain paused due to the government shutdown.