BTC Hits $126K as Shutdown Fears Fuel Bullish Momentum for XRP, ETH, ADA

Bitcoin (BTC) surged to a fresh all-time high of $126,223 on Monday, driven by a perfect mix of macro catalysts: the U.S. government shutdown, a weaker dollar, and strong spot ETF inflows. As of writing, BTC hovered near $124,000, extending its weekly gains to around 15% and lifting broader crypto markets.

Exchange Balances Near Six-Year Low
BTC holdings on exchanges have dropped to 2.83 million, the lowest in six years, with 170,000 coins withdrawn in the past month. This indicates investors are moving coins into longer-term storage, tightening supply and supporting the rally.

Global Price Milestones
Bitcoin also set records in euro and Swiss franc terms, surpassing EUR 106,000 and CHF 99,600. In Japan, expectations of Abenomics-style easing under the new prime minister have reinforced bullish sentiment, offering potential for easier liquidity conditions, according to CoinDesk’s Omkar Godbole.

Altcoins Ride the Wave
Ethereum (ETH) climbed 4% to $4,700, approaching the $4,800–$5,000 range if momentum holds. Binance Coin (BNB) surged over 20% this week to break $1,240, Dogecoin (DOGE) gained 6% to $0.26, XRP neared $3, and Solana (SOL) jumped 12% in seven days. The total crypto market cap touched $4.27 trillion before settling at $4.24 trillion, with the sentiment index at 71 (greed), leaving room for further upside.

Institutional Demand Drives Rally
ETF inflows totaled $3.2 billion last week, the second-largest weekly total on record, pushing cumulative allocations since January past $60 billion. “Bitcoin’s climb above $124,000 underscores deepening institutional conviction,” said Ryan Lee, chief analyst at Bitget. However, FxPro’s Alex Kuptsikevich noted long-term holders remain active sellers, which could limit gains if demand falters.

Shutdown Spurs Safe-Haven Moves
The ongoing U.S. government shutdown has stalled key economic data, echoing historical patterns where political gridlock drives capital toward hard assets. Combined with a softer dollar and expectations for a cautious Fed, the environment favors continued upside for BTC.

$125,000 now serves as a critical support and psychological level, setting the stage for the next leg of the rally.