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Bitcoin surpassed a new pinnacle over the weekend, leading analysts to advocate for a refreshed accumulation phase that could propel a surge to $150,000 prior to the year’s conclusion.
Bitcoin (BTC) achieved a new record high exceeding $125,700, and its market valuation temporarily surpassed the $2.5 trillion mark for the first instance in crypto history, as reported by Cointelegraph earlier on Sunday.
The surge was bolstered by several macroeconomic elements, including the recent US government halt — the first since 2018 — which some analysts suggest has rekindled interest in Bitcoin’s store-of-value function.
Historically, similar circumstances have resulted in “significant price milestones,” according to Fabian Dori, chief investment officer at digital asset banking group Sygnum Bank.
The US government shutdown has “revived dialogue about Bitcoin’s store-of-value capacity, as political instability emphasizes interest in decentralized assets,” Dori informed Cointelegraph. “Simultaneously, the wider context — marked by relaxed liquidity conditions, a service-led boost in the business cycle, and narrowing underperformance against equities and gold — has attracted focus towards digital assets,” he continued.
Nonetheless, the magnitude of the shutdown’s tailwind impact on the crypto arena will ultimately hinge on how it affects the US Federal Reserve’s viewpoint on interest rate choices, Jake Kennis, senior research analyst at Nansen, informed Cointelegraph.
“Crypto markets might gain from a resolution of the shutdown if it alleviates uncertainty and nudges the Fed towards a more accommodative approach,” Kennis remarked.
While some analysts perceived the government shutdown as an indication of a possible crypto market bottom, Kennis noted it’s “premature to designate this as a local market bottom,” as affirmation would necessitate “multi-week stability above critical support thresholds.”
Related: Bitcoin ETFs ignite ‘Uptober’ with $3.2B in second-best week on record
Bitcoin embarks on a fresh accumulation phase
Some analysts interpret Bitcoin’s recent surge as indicative of a new accumulation phase by major entities, as onchain data indicates a decrease in selling pressure from larger investors.
“Market insights suggest the present price movements may be related to an accumulation phase,” stated Sygnum Bank’s Dori.
“Selling pressure from long-term holders seems to be easing, while short-term investors indicate signs of stabilization after a phase of realized losses.”
Historically, periods of “cooling speculative activity and a more stable positioning” have preceded notable Bitcoin rallies, he further added.
Related: Crypto trader transforms $3K into $2M after CZ post sends memecoin soaring
Meanwhile, Bitcoin’s open interest “reset significantly” following last week’s options expiry, which may “prepare the landscape” for the fourth quarter, according to the blockchain data service Glassnode.
Decreasing speculative activity may draw increased attention toward Bitcoin, reinforcing analysts’ forecasts of a breakout to $150,000 in the fourth quarter of 2025, provided BTC can maintain its momentum above the crucial $120,000 psychological threshold, Charles Edwards conveyed to Cointelegraph at Token2049.
Magazine: Bitcoin is set to witness ‘one more significant thrust’ to $150K, ETH pressure increases
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