BusinessLine·2025-10-05 05:40Core Insights - Bitcoin reached a new all-time high of $125,689, driven by a broader risk rally amid the US government shutdown and increased inflows into Bitcoin-linked exchange-traded funds [2][3] - The current market sentiment is influenced by the "debasement trade," where investors are seeking safe-haven assets as various assets, including equities and gold, hit record highs [2][4] - Historically, October has been a strong month for Bitcoin, with gains in nine of the past ten years, contributing to the bullish outlook for the cryptocurrency [3][4] Market Dynamics - The US stock market also reached record highs, supported by significant artificial intelligence deals, despite concerns over a prolonged government shutdown [5] - Bitcoin's price increase is attributed to a favorable legislative environment and corporate strategies that involve stockpiling the cryptocurrency, which has also positively impacted other digital assets like Ether [4][6] - Analysts expect Bitcoin to perform well during the current government shutdown, contrasting with its performance during the previous shutdown from 2018 to 2019 [6]