'Uptober time’! BTC smashes all-time high at $125K; what's fuelling the rally?

Continuing its historic wave, touted as "Uptober”, Bitcoin (BTC) zoomed past another historic all-time high at $125,689, thus setting the tone for another bullish trend across the virtual currency landscape. The BTC rally is being driven by over $4.5 billion in ETF inflows, institutional push, and macro tailwinds such as a weakening dollar and concerns over a potential U.S. government shutdown. The rally has also pushed the overall crypto market cap to $4.26 trillion, with BTC retaining the 7th biggest asset spot globally. 

Experts feel the rally reflects a clear shift in perception towards Bitcoin, which has changed from a speculative asset to digital gold. They feel the current rally could ignite FOMO among retail and institutional participants, thus helping it march towards the $150,000 target sooner than expected.

“The crypto market is in full swing this Uptober, with Bitcoin currently trading around $123,000 after touching a new all-time high of $125,000 yesterday. Strong ETF inflows exceeding $4.5 billion and renewed institutional demand, including a $302 million accumulation, are fuelling the rally. Traders are now watching if Bitcoin can maintain momentum toward the $150,000 target, with $115,000 as key support, as 99% of supply sits in profit,” says Avinash Shekhar, Co-Founder & CEO, Pi42.

The world’s second-largest crypto in m-cap, Ethereum, is trading above $4,600, and continues to show resilience while optimism for fresh highs builds. “Supported by dollar weakness and improving macro cues, market confidence is rising. Historically, such sustained rallies tend to ignite FOMO among retail and institutional participants alike, driving prices even higher,” says Shekhar.

Factors leading to the BTC rally

Experts say weak dollar strength, massive downward revisions of US jobs numbers, and the US government shutdown have created a bullish environment for safe-haven assets like gold and crypto. This setup has also driven strong institutional demand for Bitcoin, with spot Bitcoin ETFs seeing over $3.25 billion in inflows. Edul Patel, CEO of Mudrex, says the total Bitcoin balance on centralised exchanges, meanwhile, fell to a six-year low of just 2.83 million BTC, which increased buy-side pressure, adding to the momentum. He sees BTC rising to $140K in the coming weeks. “Currently, stabilising at $124,100, a sustained momentum could push BTC towards $140,000 in the coming weeks, while forming a strong support at $117,300,” says Patel.

Raj Karkara, COO, ZebPay, terms Bitcoin’s record-breaking surge as a “defining moment” for the digital asset ecosystem. He says the rally isn’t fuelled by short-term momentum alone but reflects a structural tightening of supply amid robust on-chain activity and renewed investor conviction. “As liquidity migrates towards regulated venues and Bitcoin cements its place among the world’s most valuable assets, we’re witnessing a pivotal evolution in market maturity and capital efficiency within the crypto economy. These developments highlight not only Bitcoin’s resilience as a store of value but also the growing sophistication of participants navigating this dynamic landscape,” says Karkara. 

BTC’s rise as ‘Digital Gold’

As BTC crosses its all-time high mark at $125,689, the digital currency has outperformed every other asset class, with a surge of over 30% in 2025. 

“What’s even more encouraging is that this rally isn’t limited to Bitcoin; Ethereum, Solana, and XRP are also witnessing strong traction, signalling optimism across the broader crypto ecosystem,” says Sumit Gupta, Co-founder of CoinDCX.

He says investors are increasingly viewing Bitcoin as part of the ‘debasement trade,’ with concerns over the U.S. government shutdown driving demand for safe-haven assets. “Rising institutional adoption, coupled with global economic uncertainty, continues to strengthen Bitcoin’s position as the ‘digital gold’ of our time.”