Bitcoin breaks through $125,000, hitting a new record high

Bitcoin hit another new high as a broad rally in risk assets triggered by the US government shutdown boosted the world's largest cryptocurrency.

Bitcoin briefly rose to $125,689 on Sunday (October 5), surpassing its previous high set on August 14, thanks to rising US stocks and renewed inflows into Bitcoin-related ETFs.

"With so many assets, including stocks, gold, and even collectibles like Pokémon cards, reaching new highs, it's not surprising that Bitcoin is benefiting from the narrative of a devaluing dollar," said Joshua Lim, co-head of markets at cryptocurrency prime broker FalconX.

Bitcoin's traditionally strong October performance has also reinforced bullish sentiment in the market. Bitcoin has risen in October in nine of the past ten years.

Bitcoin hit its previous record high of $124,514 on August 14 and has risen over 30% so far this year.