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Bitcoin Sets Record Above $125,000 on ETF Inflows and Tightening Supply

A wave of spot-ETF buying against a weaker dollar powered the move, leaving traders alert to sharp pullbacks.

Overview

  • Bitcoin peaked near $125,700 on Oct. 5 before easing into consolidation around the mid-$123,000s after a rapid spike to fresh highs.
  • U.S. spot Bitcoin ETFs took in roughly $3.2 billion over the past week, a key driver cited across reports as institutional demand accelerated.
  • Exchange-held supply fell to about 2.8–2.83 million BTC, a six-year low that reduced sell-side liquidity and amplified price moves.
  • Market activity surged with 24-hour Bitcoin volume roughly doubling to about $76 billion as crypto liquidations reached around $427 million, including roughly $242 million in shorts.
  • Macro tailwinds included a softer U.S. dollar and a federal government shutdown, while Bitcoin’s market value hovered around $2.5 trillion as analysts floated $135,000–$160,000 targets with caution over near-term volatility.