Bitcoin surged over 5% to over $119,000 between October 1-2, 2025, during Asian trading hours, as a rare alignment of macro, regulatory, and on‑chain factors propelled the market higher. The US government shutdown rattled traditional markets but strengthened Bitcoin’s safe‑haven appeal.
Interestingly, new data suggest that the bull cycle still has room.
Behind BTC’s Explosive October Rally
According to the latest update shared by CryptoQuant, weak economic data added fuel to BTC’s recovery. For instance, the ADP report showed 32,000 job losses, which is the steepest in over two years, while delayed nonfarm payrolls led traders to price in an almost certain October Fed rate cut.
A weaker dollar further supported flows into Bitcoin. Regulatory momentum also supported the rally. The SEC moved to ease listing requirements for crypto ETFs, and reviews of Solana, XRP, and other applications are scheduled for this month. Spot Bitcoin ETFs in the US saw nearly $1 billion of inflows in late September, while BlackRock’s fund crossed $80 billion AUM, and reports indicated Vanguard may revisit its crypto stance.
Adding to the optimism, the US Treasury clarified that unrealized Bitcoin gains held by corporations will not be taxed, which is being deemed a landmark policy shift and is widely expected to drive more firms to adopt BTC as a reserve asset.
On‑chain data echoed the bullish backdrop. CryptoQuant noted that exchange reserves fell sharply from 2.61 million BTC in early September to 2.49 million by October 1, which indicated a strong outflow into cold storage and reduced near‑term sell pressure.
As Bitcoin entered its so‑called “Uptober” phase and gold notched new all‑time highs, a wave of bullish sentiment appears to have swept over crypto markets.
“Bitcoin’s surge was not due to a single factor but the convergence of macro uncertainty, regulatory shifts, institutional adoption, favorable tax policy, and on‑chain supply contraction. Together, these forces created the perfect setup for Bitcoin’s decisive move higher, strengthening confidence that the bull cycle still has room to run.”
Crucial Levels For Bitcoin
Analyst CasiTrades has flagged $120K‑$122K as the critical resistance zone that will define Bitcoin’s next move. As BTC attempts to push toward a new local high, the analyst said that it is “an absolutely critical time to pay attention.” A breakout above this level could open the path to fresh record territory, while a rejection risks triggering a sharp pullback toward $100K or lower.
She warned that the current setup carries both high risk and high reward, and uncertainty is running equally strong.