Bitcoin reached a new all-time high yesterday, climbing to around $126,206. Concerns over a potential US government shutdown and political crises in France and Japan have driven traders toward alternative assets, including Bitcoin, resulting in yet another record high. This surge in the price of digital gold reflects not only a flight to safety but also the growing recognition of cryptocurrency as a legitimate asset class.
Political instability — particularly in developed economies — traditionally causes turbulence in financial markets. The US government shutdown, triggered by budget disagreements, fuels uncertainty around future fiscal policy and economic growth. In France, a political crisis sparked by snap elections could lead to shifts in economic policy, which also rattles investor confidence. In such an environment, alternative assets like Bitcoin become an attractive safe haven. A sharp inflow into spot Bitcoin ETFs further supports this trend.
Thanks to its decentralized nature and limited supply, Bitcoin is increasingly viewed as a hedge against inflation and currency risks. As more institutional investors start including Bitcoin in their portfolios, its legitimacy and stability continue to grow. Additionally, the development of cryptocurrency infrastructure — such as exchanges and custodial services — is making Bitcoin more accessible to the general public.
However, it is important to remember that cryptocurrency markets remain volatile and prone to sharp fluctuations. Traders should exercise caution and thoroughly assess risks before investing in Bitcoin or other cryptocurrencies.
Another sign of the growing attractiveness of the crypto market is the fact that the total market capitalization of stablecoins has surpassed $300 billion — a new all-time high. This milestone reflects the increasing use of stablecoins as a reliable means of exchange and store of value in the digital space. Stablecoins, which are pegged to stable assets like the US dollar, allow users to avoid the volatility typical of other cryptocurrencies, while still enjoying the core benefits of blockchain technology — speed, transparency, and the absence of intermediaries.
The growing capitalization of stablecoins highlights the rising popularity of the crypto market, where they are widely used for trading, lending, and earning passive income. Stablecoins enable users to participate in these activities without the need to convert crypto into fiat currency, streamlining and accelerating transactions.
Furthermore, the rise in stablecoin capitalization signals the maturing of the cryptocurrency market and users' readiness for more advanced financial instruments. Stablecoins serve as a bridge between the traditional financial system and the world of cryptocurrencies, facilitating easier market entry for new participants and boosting overall liquidity.
Trading recommendations
Bitcoin (BTC) Buyers are now anticipating a return to the $125,500 level, which would open a direct path toward $127,700, and from there it's a short distance to $130,200. The furthest target is the $131,400 area — breaking above it would signal a strengthening bull market. In case of a decline, buyers are expected around $123,000. A drop below this level could quickly push BTC down to $120,900, with the furthest support seen near $119,100.
Ethereum (ETH) A confirmed breakout above $4,616 opens the road to $4,697. The furthest bullish target lies around $4,784 — a breakout above this level would indicate renewed buying interest and a strengthening bull market. If Ethereum falls, buyers are expected around $4,533. Dropping below this level could send ETH down to $4,432, with the furthest downside target at $4,331.
What's on the chart
- The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
- The green line shows the 50-day moving average.
- The blue line is the 100-day moving average.
- The lime line is the 200-day moving average.
Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.
