Bitcoin, the world’s largest cryptocurrency by market capitalization, soared to a new record high on Sunday, trading at $125,245.57 as of 05:12 GMT.
The milestone marks a 2.7% gain from the previous session and surpasses its earlier peak of $124,480 set in mid-August.
The rally has been fueled by a combination of favorable regulatory signals from the administration of U.S. President Donald Trump and robust demand from institutional investors.
Market analysts point to the recent momentum in U.S. equities and sustained inflows into bitcoin exchange-traded funds (ETFs) as key drivers behind the cryptocurrency’s eighth consecutive day of gains, noting that the ETF inflows are a strong signal that mainstream adoption is accelerating.
Bitcoin’s performance reflects growing confidence among institutional players and a more accommodating regulatory environment.
Meanwhile, the U.S. dollar weakened on Friday, posting multi-week losses against major global currencies.
The retreat was attributed to mounting uncertainty over a potential government shutdown, which has delayed critical economic data releases, including payroll figures that are essential for assessing the health of the U.S. economy.
The contrasting trajectories of bitcoin and the dollar underscore shifting investor sentiment, with digital assets increasingly viewed as a hedge against traditional market volatility and fiscal instability.
The crypto bloodbath pushed the Crypto Fear and Greed Index to Extreme Fear territory. The Crypto Fear and Greed Index is now at 29, down 16 points from the previous day. This means that as the market approaches Extreme Fear territory, it has formally entered a state of fear.