Bitcoin Sets New All-Time High Above $125,000 Amid US Government Shutdown: Safe-Haven Asset Rally Continues

Bitcoin, the world's largest digital asset, reached a remarkable high of $125,689 during the weekend trading session.

On Sunday, Bitcoin established a new record for the first time since mid-August, as investors flocked to safe-haven assets amid the ongoing US government shutdown, a movement market analysts have termed the "debasement trade."

According to data compiled by Bloomberg, the premier cryptocurrency touched $125,689 over the weekend and continued to trade near this all-time peak on Monday morning in Singapore, hovering around the $124,000 mark.

This significant price surge coincided with the US government shutdown, which has intensified demand for assets perceived as safe havens. The shutdown's impact extended to preventing the Bureau of Labor Statistics from releasing its regular nonfarm payroll data on Friday. Gold also benefited from this market sentiment, climbing above $3,900 on Monday to establish yet another record high, continuing its months-long upward trajectory, while Bitcoin maintained leadership among digital currencies.

Looking forward, market traders anticipate resistance at the $135,000 level, with potential for reaching $150,000 "if momentum holds," according to Rachael Lucas, an analyst at BTC Markets. However, she cautioned that "with leverage building, any sharp reversal could trigger volatility."

Options markets are displaying a "bullish skew" with over 60% of open interest concentrated in call options, a configuration that "reflects strong conviction but also raises the risk of liquidation cascades if momentum stalls," Lucas further explained.

Ether, ranking as the second-largest digital asset, remained relatively stable at $4,522 as of 10:27 a.m. in Singapore on Monday. Similarly, XRP held steady at just under $3.