Bitcoin Hits New All-Time High Above $125K on Institutional Demand

Bitcoin has officially surged past the $125,800 mark, achieving a new all-time high and extending its impressive October rally. This significant milestone underscores Bitcoin's increasingly dominant position within the global financial landscape. While the leading cryptocurrency experienced a brief intraday correction from its peak, it continues to trade robustly around the $125,300 level, according to TradingView data. This surge in value is largely attributed to a substantial influx of institutional capital witnessed over the past week. Global crypto-asset exchange-traded products (ETPs) collectively attracted a record-breaking $5.95 billion. A significant portion of this, approximately $5 billion, originated from US-based spot Bitcoin ETFs, with BlackRock's iShares Bitcoin Trust (IBIT) leading the charge, recording net inflows of $3.2 billion.

Structural Shortage Driven by Institutional Demand

The sustained inflow of institutional capital has become a pivotal force shaping market dynamics. Bitcoin ETFs now hold an estimated 6% of the total BTC supply. This accumulation is contributing to what analysts describe as a "structural cycle of scarcity." As institutional investors continue to increase their holdings, exchange reserves have dwindled to multi-year lows, creating upward pressure on Bitcoin's price.

Macroeconomic Sentiment Bolsters Bitcoin's Appeal

Adding further momentum to Bitcoin's ascent are endorsements from prominent figures in the investment world. Legendary investor Paul Tudor Jones recently characterized Bitcoin as a "very attractive" hedge against US fiscal policy, citing the nation's 6% budget deficit and recent interest rate cuts by the Federal Reserve. His remarks have resonated within traditional financial circles, reinforcing Bitcoin's perception as a macro hedge rather than solely a speculative asset.

Technical Analysis Indicates Persistent Momentum

From a technical perspective, Bitcoin's decisive breach of the $125,000 resistance zone has triggered algorithmic buying and the liquidation of short positions exceeding $923 million, based on market data. The Relative Strength Index (RSI) currently stands at 70.91, indicating bullish, yet not overheated, market conditions. Meanwhile, the Moving Average Convergence Divergence (MACD) histogram continues its upward trajectory, registering at 1,221.84. The immediate support level for Bitcoin is observed at $121,583, which aligns with the 23.6% Fibonacci retracement level.