Bitcoin Sets Fresh Record, Ethereum Follows With Strong Gains

TradingKey - Bitcoin climbed to a fresh record on Sunday, driven by a flight to perceived “hard assets” as the U.S. government shutdown pushed investors toward what traders have dubbed the “debasement trade.”

The world’s largest cryptocurrency touched $125,689 over the weekend and traded near $124,000 on Monday, according to Bloomberg. 

ETF Flows and Market Positioning

Investor demand for digital assets has accelerated sharply. U.S. Bitcoin exchange-traded funds saw $3.2 billion in inflows last week — the second-largest haul since their debut in 2024. Open interest in BlackRock’s iShares Bitcoin Trust rose to a record $49.8 billion on Friday.

Combined open interest on Deribit, the crypto derivatives platform, and IBIT now approaches $80 billion, nearly ten times the level seen at the start of 2024, according to David Lawant, head of research at FalconX. “Option market dynamics are likely shaping the underlying market price action more than ever before,” Lawant said in a note.

Traders Eye Resistance at $135,000

Analysts expect Bitcoin to encounter technical resistance near $135,000, with a potential path toward $150,000 if momentum persists, said Rachael Lucas of BTC Markets. “But with leverage building, any sharp reversal could trigger volatility,” she warned.

Options data show the market remains “skewed bullish”, with more than 60% of open interest concentrated in calls — a sign of investor conviction but also a risk of liquidation cascades if the rally falters.

Historically, October — often dubbed “Uptober” in crypto circles — has been Bitcoin’s strongest month, averaging 22.5% gains over the past decade, Bloomberg data show.

Ethereum Tracks Higher on ETF Inflows

Ether (ETH), the second-largest digital asset, traded at about $4,560 Monday, holding near its highest level since September 20. Its price has risen alongside renewed inflows into spot Ethereum ETFs, which attracted $233 million on Friday, lifting total weekly inflows above $1.3 billion.

That marked a sharp reversal from the $795 million outflows the previous week. Total Ethereum ETF assets have now climbed to $30.57 billion, representing roughly 5.35% of the cryptocurrency’s market capitalization.

Demand is also evident in the derivatives market, where Ethereum futures open interest reached $61 billion, the highest since September 22. Daily trading volumes have approached $100 billion, underscoring a sustained revival in market activity.

On-chain data show Ethereum’s total value locked (TVL) has surged to a record $200 billion, while its stablecoin supply now exceeds $160 billion. Institutional demand is rising as well, with BitMine Immersion holding $7.7 billion in Ether and SharpLink about $3.6 billion.