Bitcoin reached a new all-time high of $125,560 earlier today, marking the first time it has crossed the $125,000 threshold. The price briefly surged past the milestone before easing back to around $123,000, which is approximately 2% below the peak. Despite the minor pullback, Bitcoin continues to trade near record levels.
This new high also marks a symbolic milestone, with one Bitcoin now briefly valued at 1/8 of a million dollars. The previous all-time high was set in August 2025, and the current rally extends a multi-week upward trend.
Institutional Activity and Supply Dynamics
The recent surge in price is being closely linked to a wave of institutional investment. Spot Bitcoin exchange-traded funds (ETFs) have seen strong inflows in recent days, adding to the $28 billion that has entered these funds so far this year. Some of the largest daily inflows this week were led by BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund.
At the same time, data from on-chain analytics platforms shows that the total Bitcoin held on centralized exchanges has dropped to levels not seen since 2019. More than 114,000 BTC – worth roughly $14 billion – have been withdrawn from exchanges in just the last two weeks. This drop in available supply has contributed to upward price pressure.
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Macroeconomic Influence and Market Sentiment
Broader macroeconomic conditions also appear to be playing a role in Bitcoin’s momentum. The ongoing U.S. government shutdown has heightened investor interest in alternative assets, with Bitcoin increasingly viewed as a potential hedge against policy uncertainty and dollar instability.
In addition, falling real yields and growing expectations of prolonged fiscal tensions have added to the appeal of assets perceived as limited in supply. Several asset managers and analysts have cited Bitcoin’s store-of-value narrative as gaining renewed attention under current conditions.
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Current Status and Market Focus
As of now, Bitcoin remains close to its all-time high, trading just 2% below peak levels. Short positions worth hundreds of millions have been liquidated in the last 24 hours, contributing to upward price momentum.
Whether Bitcoin can maintain support above $123,000 or push toward new highs in the coming days will likely depend on the continuation of institutional demand, the pace of ETF inflows, and broader economic developments. For now, the $125,000 milestone stands as a significant new benchmark in Bitcoin’s 17-year history.
