Bitcoin, the world’s most recognized digital currency, just crossed the $120,000 mark. This happened on Thursday, hitting a local high of $120,221. That’s a level we haven’t seen since mid-August, according to data from CoinGecko. This surge has investors feeling optimistic, betting on a historically strong October for risky assets. Favorable economic trends are adding to this positive mood.
As of this writing, Bitcoin trades around $119,800. It saw a small dip but is still up 1.6% in the last 24 hours. The excitement is palpable as market watchers eye what could be a powerful end to the year for cryptocurrencies.
The gains mirror strong inflows into U.S. spot Bitcoin exchange-traded funds (ETFs). These funds added $675.8 million yesterday. This pushed weekly inflows past $1.6 billion, according to SoSoValue. Other major cryptocurrencies also saw rises on Thursday morning. Ether (ETH) jumped 3% to over $4,450. Solana (SOL), XRP, Binance Coin (BNB), and Cardano (ADA) each climbed between 3% and 4%. The total crypto market value increased by almost 3% to $4.21 trillion for the day.
Bears Take a Hit
Bitcoin’s sudden price jump hit bearish traders hard in the derivatives market. Data from Coinglass shows heavy losses. More than $41 million in leveraged Bitcoin short positions were wiped out in the last 4 hours alone. Over the past 24 hours, this total reached $114 million.
Across the entire crypto market, short position liquidations hit $288 million in the same period. This compares to $121.7 million in liquidated long positions, which are bets on prices rising. The data reveals that nearly 128,000 individual traders lost money as Bitcoin climbed. This highlights the strong upward momentum.
A New Economic Chapter
Bitcoin’s recent rally follows a slower September for crypto prices. For weeks, investors held back on risk. This was due to broader economic factors. One big factor was waiting for the U.S. Federal Reserve’s interest rate decision. The Fed cut rates by 25 basis points on September 17. They will meet again this month to consider another cut.
October, however, brings a fresh outlook. Investors are now more hopeful. They see a positive economic environment ahead. This includes clearer monetary policies. Also, Bitcoin is entering what has historically been its best quarter over the last decade. Even the ongoing partial U.S. government shutdown has not slowed Bitcoin’s momentum. In fact, it might even be helping it.
October’s Winning Streak
Historically, October has been a winning month for Bitcoin. Coinglass data shows impressive numbers. Since 2013, Bitcoin has gained an average of 20.38% in October. The median return for the month stands at 14.7%. Only two of the past 13 Octobers have ended with losses. Since 2019, Bitcoin has finished every October in the green, even during the bear market of 2022.
This track record fuels expectations for “Uptober,” a crypto community term for the month’s usual positive performance. But the gains don’t stop there. October often sets the stage for a strong year-end finish. The last quarter, from October to December, consistently outperforms other periods. Since 2013, the average quarterly return for Bitcoin during these months has been a robust 79.26%.
More Factors and What’s Next
Bitcoin’s upward trend also gets a boost from developments within the crypto world. CoinDesk points to growing institutional interest. Better blockchain technology also strengthens confidence in Bitcoin as a store of value.
The partial U.S. government shutdown, which started in late September, has not hurt crypto markets. This suggests Bitcoin may be proving its resilience against political unrest. While Bitcoin reaches significant price levels again, experts still warn about volatility. Yet, the general feeling is positive. The current market conditions, along with October’s strong history, could push Bitcoin to new highs in the final quarter of 2025. JPMorgan recently predicted Bitcoin could reach $165,000 in the short term. CryptoQuant, among others, forecasts $200,000. Bitcoin set its all-time high on August 14 at $124,128. It currently sits just 3% below that peak.