The Bitcoin price hit a record high above $125,000 shortly after midnight ET on October 5, 2024. The cryptocurrency surged past its previous all-time high of nearly $124,500, set in August, marking a 3% gain for the day.
A key factor behind this surge is BlackRock’s IBIT BTC ETF, which recently entered the top 20 U.S. exchange-traded funds by assets under management, surpassing $90 billion for the first time. Analysts believe IBIT’s rapid ascent could be the fastest in ETF history, signaling mainstream adoption of digital assets.
The latest Bitcoin price spike also follows the Federal Reserve’s decision to implement a 0.25% interest rate cut last month, the first since December 2024. Market expectations indicate more cuts ahead, with the CME FedWatch tool projecting a 96% probability of another reduction in October and an 86% chance of one in December.
Meanwhile, analysts at JPMorgan have raised their year-end Bitcoin price target to $165,000. They suggest that the cryptocurrency will continue to track gold’s performance as investors hedge against dollar depreciation through what they call the “debasement trade.”
With growing institutional investment, favorable macroeconomic conditions, and rising optimism among traders, Bitcoin’s climb above $125,000 may signal the start of another historic bull run.