The digital-asset rose for a sixth straight day, and is up about 10% since Friday
Bitcoin rose to $120,000 for the first time since setting a record high seven weeks ago as speculation increases that the US government shutdown will drive investors to safe-haven assets.
The largest cryptocurrency by market value has long been referred to as “digital gold” by advocates, who see it serving a similar role as the precious metal during times of turmoil. Gold retreated from a record high Thursday.
For the first time in a while, the macro theme seems to have taken hold of Bitcoin, which has seen $1.5 billion of ETF inflows week to date, and appears to be attempting to catch up to gold’s eye-watering move of the last few weeks, said Karim Dandashy, an over-the-counter trader at crypto trading firm Flowdesk.
The digital-asset rose for a sixth straight day, and is up about 10% since Friday. Bitcoin was around 2% higher at $120,16 in New York. It reached a record $124,514 on Aug. 14.
Smaller, more volatile tokens were up even more, with Solana rising 5.7%, Litecoin gaining 6.7% and Dogecoin firming 4.7%. Crypto-related stocks also rallied. Exchange operator Coinbase Global Inc. added 7.8%, Bitcoin treasury firm Strategy Inc. jumped 3.5% and miner MARA Holdings Inc. rose 2.1%.
David Lawant, head of research at digital-asset prime brokerage firm FalconX, added that Bitcoin’s market structure has been waiting for a “breakout” for some times.
Spot order books have shown persistent sell-side skew for months without a decisive breakdown in price, signalling more absorption than apathy, said Lawant. That’s the classic coiled-spring dynamic, when overhead supply thins, rallies can come in sharp, cascading bursts. This could be the situation we are seeing right now in the market.
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