Bitcoin surged past $125,000 for the first time in its history during Asian market hours. The leading cryptocurrency reached this milestone amid nearly $50 billion in 24‑hour trading volume.
Short positions faced significant liquidations as bullish momentum accelerated. Almost $100 million in shorts were liquidated within a single hour, while over $200 million in short positions became forced buyers across the 24‑hour period.
Favorable macroeconomic conditions combined with rising institutional demand have fueled Bitcoin's 2025 performance. Joe DiPasquale, CEO of BitBull Capital, noted that the prolonged government shutdown continues to drive interest in hard assets, supporting demand for Bitcoin as an alternative store of value.
The rally briefly stalled Friday afternoon in U.S. trading as traders took profits near the previous $124,128 peak. However, the breakthrough came as analysts maintained their bullish outlook for the asset.
Standard Chartered's Geoff Kendrick projects Bitcoin will reach at least $135,000 in the near term. The bank's global head of digital assets expects prices to surpass $200,000 before year‑end.
Market capitalization briefly crossed the $2.5 trillion milestone for the first time. The U.S. government shutdown, the first since 2018, has renewed discussions around Bitcoin's role as a store of value amid political uncertainty, according to Fabian Dori, CIO at Sygnum Bank.
On‑chain data suggests that declining selling pressure from whales signals a new accumulation phase. Long‑term holders appear to be easing selling pressure while short‑term investors show stabilization after realized losses, potentially setting the stage for further gains.
Charles Edwards told reporters at Token2049 that slowing speculative activity may reinforce predictions of a breakout to $150,000 in Q4 2025 if Bitcoin sustains momentum above the $120,000 psychological level. Analysts point to cooling speculative activity and steadier positioning as historical precursors to significant rallies.