What to Know:
- •Bitcoin hits new all-time high of $126K amid U.S. shutdown.
- •Driven by institutional accumulation and ETF inflows.
- •Gold prices also reach historic highs, affecting "digital gold" narrative.
Bitcoin soared past $126,000 on September 12, 2025, fueled by institutional buying amid U.S. political gridlock, marking its highest value in the cryptocurrency space.
The rally highlights Bitcoin's role as a haven asset, with ETF inflows and declining exchange balances indicating strong institutional interest during economic uncertainty.
Bitcoin reached a new record high of over $126,000 on September 12, 2025, as institutional demand surged amid political uncertainty in the U.S.
The price surge highlights Bitcoin's role as a haven asset during political gridlock, affecting market dynamics and institutional behavior.
Bitcoin Exceeds $126K Due to U.S. Political Uncertainties
Bitcoin surged above $126,000 on September 12 involving spot ETF issuers and institutional investors. The increase was fueled by U.S. political and macroeconomic uncertainties.
The number of enterprises holding BTC as treasury assets rose by 27 to 343. This accumulation trend reversed prior outflows, significantly influencing Bitcoin's valuation.
ETF Inflows Highlight Bitcoin's Growing Haven Status
The surge increased Bitcoin's status as a haven asset, particularly amid heightened political tensions. ETF net inflows of $1.35 billion reflect confidence in its long-term value. Mark Johnson, CEO, Digital Asset Fund, noted, "ETF net inflows reached roughly $1.35 billion since the start of October, suggesting long-term holders are withdrawing coins from trading venues—typically seen as a bullish sign."
The U.S. government shutdown contributed to institutional investors’ focus on secure assets, impacting financial systems and creating market shifts favoring Bitcoin.
Past Political Crises Mirror Current Bitcoin Trends
The current trend mirrors past occurrences when Bitcoin rose during U.S. political crises. Historical correlations with gold's breakout add context to recent market behaviors.
Analysts predict potential upward momentum toward $160,000 in early 2026 if current trends persist, although a fall below $102,000 could reverse this forecast.