On Sunday, October 5, 2025, Bitcoin burst past $125,000 in thin weekend trading, setting a fresh record and putting crypto back in mainstream headlines. Prices cooled a bit on Monday, but the move lit up screens from Karachi to California. The question everyone asked was simple: what just powered this jump? (Reuters)

The big drivers

First, money poured in through U.S. spot Bitcoin ETFs. Net inflows hit about $3.24 billion last week—one of the biggest weekly totals since launch—led by BlackRock’s IBIT. That steady bid gave buyers confidence and absorbed profit-taking. Public flow trackers like Farside show a single-day spike near $985 million on Oct. 3, underscoring how persistent the demand has become. (CoinDesk)

Second, the macro backdrop turned friendlier. The Federal Reserve cut rates in September and markets expect more easing, which makes risk assets and “hard” assets more attractive. At the same time, the U.S. dollar has slid this year, nudging investors toward alternatives. When borrowing costs fall and the dollar softens, the Bitcoin narrative tends to get tailwinds. (Reuters)

Third, politics mattered. A U.S. government shutdown has dragged into October, and investors often reach for perceived hedges—gold and, increasingly, Bitcoin—when Washington looks messy. That “safe-haven” impulse amplified weekend moves, especially with thinner liquidity on Sundays. (Reuters)

The supply squeeze

Behind the scenes, supply is tighter than last year. April 2024’s halving cut new issuance to 3.125 BTC per block, reducing sell pressure from miners. Halvings don’t guarantee instant gains, but with ETF demand rising, fewer new coins meeting the market helps rallies travel farther. (Reuters)

What could cool the rally?

If ETF inflows fade, the dollar rebounds, or the Fed signals a pause on cuts, momentum can stall. A quick resolution to the shutdown could also sap the “hedge” demand. And as always, leverage can magnify pullbacks after big weekends.

Essential Insights

The run to $125,000 wasn’t magic. It was the convergence of surging ETF inflows, a friendlier macro setup, political turmoil boosting haven demand, and a structurally tighter supply. When those forces line up, Bitcoin tends to move—fast.