Bitcoin established another record at $126,223 Monday while Ethereum climbed to $4,700, its strongest level in over three weeks, as macro conditions aligned to support broad crypto market gains.
The rally extended across multiple assets. DOGE and BNB each gained 6%. October's historically bullish reputation appears intact as institutional flows and supply dynamics drive prices higher.
Jean-David Péquignot, chief commercial officer at Deribit, described the move as driven by macroeconomic tailwinds, including the government shutdown, record ETF inflows, and declining exchange supplies. He characterized the dynamics as a self-reinforcing bull cycle.
Bitcoin also reached new peaks in euro and Swiss franc terms, crossing 106,000 EUR and 99,642 CHF, respectively. The gains occurred as dollar weakness persisted and investors sought inflation hedges amid geopolitical uncertainty.
Galaxy Digital shares jumped 7% after unveiling GalaxyOne, a new trading platform competing with Robinhood's retail-focused offering. Robinhood stock fell 3% on the announcement, while Coinbase, Circle, and Strategy each closed roughly 2% higher.
Mining stocks recorded the session's largest gains. Marathon Digital, Riot Platforms, and CleanSpark each rose approximately 10% following news that OpenAI secured a deal to purchase tens of billions in AI chips from AMD. The agreement may give OpenAI up to a 10% stake in the chipmaker.
Technical analysis suggests short-term targets of $128,000 to $130,000, with possible upside to $138,000. However, Péquignot cautioned that overbought conditions could trigger a brief pullback toward $118,000 to $120,000.
ETF demand continues to squeeze available supply as spot products maintain strong inflows. Péquignot advised watching for volatility spikes and shifts in put volume as potential signals for near-term corrections.
The rally reinforces Bitcoin's positioning as a hard asset alternative during periods of currency debasement. Bulls are targeting levels above $130,000, while bears may find opportunities if overbought conditions trigger temporary reversals.