Bitcoin Surges Past $125,000 in ‘Uptober’ Rally as Market Cap Approaches $2.5 Trillion

Bitcoin has reached a new all-time high of $125,559, surpassing its previous record of $124,400 set in August. The crypto rose from an intra-day low of $121,577, marking a strong start to October, a month historically associated with positive performance for the asset. 

According to TradingView data, Bitcoin’s price has climbed over 6% since the beginning of the month, reflecting growing investor optimism. The rally follows expectations of another interest rate cut by the US Federal Reserve. Market analysts report a 97% probability of a 25-basis-point reduction at the upcoming Federal Open Market Committee (FOMC) meeting. 

A rate cut could encourage further investment in risk assets such as Bitcoin by reducing yields on traditional financial instruments. This development mirrors the previous market movement in August when Bitcoin also surged ahead of the Fed’s rate adjustment.

Bitcoin’s current price momentum has pushed its market capitalization to approximately $2.5 trillion. The asset now ranks as the seventh-largest globally, just behind silver, and exceeds the market values of major companies such as Meta and Amazon.

Institutional Inflows and Declining Exchange Supply Drive Price Growth

Institutional interest continues to support Bitcoin’s rally. Data shows that Bitcoin exchange-traded funds (ETFs) recorded $3.24 billion in inflows last week, marking the most significant weekly inflow of the year. This surge reflects the increasing participation of institutional investors, who view Bitcoin as a valuable asset class within diversified portfolios.

ETFs allow institutions to gain exposure to Bitcoin without directly holding the cryptocurrency, enhancing market accessibility. The rising demand for these products suggests confidence in Bitcoin’s long-term potential. Analysts attribute a portion of the recent price increase to these strong institutional inflows, which have reduced market supply and increased buying pressure.

At the same time, on-chain data from Glassnode indicates that Bitcoin’s supply on centralized exchanges has fallen to its lowest level in six years, now standing at approximately 2.83 million BTC. 

The shift toward self-custody suggests that an increasing number of investors are holding Bitcoin for the long term, rather than trading it on exchanges. Reduced exchange reserves often create supply constraints, which can further drive up prices as demand increases.

Also Read: Crypto Prices Today: Bitcoin Price Holds Above $114,000, Ethereum at $4,147, XRP $2.84

Market Outlook and Expert Projections for Year-End

The combination of institutional demand, potential monetary easing, and tightening market supply has fueled optimistic projections for Bitcoin’s future performance. Some analysts predict the cryptocurrency could reach as high as $200,000 by the end of 2025 if current market conditions persist.

Bitcoin’s expanding role in the global financial markets continues to attract both retail and institutional attention. As macroeconomic factors align and liquidity conditions evolve, the asset remains top priority for investors looking for growth opportunities in the digital asset market.