Bitcoin has seen a notable price surge, climbing from $122,000 to $124,289 during the Asian trading session on Sunday, nearing its August highs. This upward movement aligns with a surge in demand for U.S.-listed spot Bitcoin ETFs, which attracted net inflows of $3.24 billion over the past week marking the second-largest weekly influx on record and signaling strong investor enthusiasm.
The rise in Bitcoin’s price coincides with growing political instability in the United States due to a potential government shutdown. Such uncertainty has driven investors toward Bitcoin as a perceived safe haven. Jeff Dorman, CIO at Arca, commented, “The only time I buy BTC is when society loses faith in governments and local banks. BTC looks like a good buy here ahead of another U.S. government shutdown.” This sentiment mirrors a broader trend among investors seeking protection from macroeconomic challenges.
Beyond politics, several macroeconomic factors are also fueling Bitcoin’s momentum. Noelle Acheson, author of the Crypto Is Macro Now newsletter, noted that “U.S. inflation is more likely to rise than fall and what benefits gold also benefits Bitcoin, especially since it remains under-allocated.” Rising global debt levels, currency pressures, and supportive market conditions including lower interest rates and yield curve control have improved liquidity and encouraged risk-taking among institutional investors, channeling more capital into digital assets like Bitcoin.
As Bitcoin leads the rally, major altcoins such as ETH, XRP, SOL, and DOGE have also recorded gains, reflecting broader confidence in the crypto market. At the time of writing, Bitcoin traded around $124,080, showing sustained investor optimism during what has historically been a bullish October.
Overall, Bitcoin’s recent rally underscores its growing role as a hedge against economic uncertainty. The convergence of ETF inflows, political instability, and favorable macro conditions paints a picture of a market where investors increasingly turn to crypto as a strategic asset amid unpredictable financial landscapes.