Bitcoin hit a second record high on Monday, trading above $127,000 after first breaking $125,000 on Sunday

Bitcoin broke its all-time high for the second time on Monday night, smashing past $127,000, as traders watched as the price of the OG crypto by market value hit $127,035 before climbing again to $127,253.

This followed Sunday’s first break above $125,000, and by Monday, Bitcoin was already up by 4% on the session and more than 33% for the year, according to data from Reuters.

This breakout comes alongside a weakening U.S. dollar, with Trump’s tariffs on American trade partners and uncertainty over their impact pushing investors to shift away from dollar-based assets. The dollar index sat flat at 98.09 on Monday but has fallen nearly 10% since January.

This environment is helping crypto assets attract more buyers who are looking for alternatives. Anthony Pompliano, founder and CEO of Professional Capital Management, wrote on Monday, “Bitcoin is the hurdle rate. If you can’t beat it, you have to buy it. And I think the next 12 weeks are going to be very fun for bitcoin holders.”

Traders raise bets on $140,000 as options, ETFs, and futures pile in

The push to this new record began after Bitcoin briefly dipped under $110,000 just over a week ago. David Morrison, senior market analyst at Trade Nation, wrote in an email, “Bitcoin has surged ever since it briefly broke below $110,000 just over a week ago.

The current rally means that Bitcoin has added around 13% since 28th September.” He also noted the daily MACD turned up sharply, which may show momentum is strong, but could also mean Bitcoin may need to consolidate before pushing further.

Meanwhile, short-term Bitcoin options contracts settling at year-end are now clustered around the $140,000 strike price for calls on Deribit by Coinbase, while puts have also seen moderate increases as some players protect against a pullback, meaning traders are hedging even as they chase upside.

Spot market inflows have been a core driver of the rally. Traders reported $3.2 billion poured into a group of 12 U.S. Bitcoin ETFs last week, the second-highest inflow since their 2024 debut. BlackRock’s iShares Bitcoin Trust ETF hit a record $49.8 billion in notional open interest on Friday, Bloomberg data showed.

In the derivatives market, Bitcoin perpetual futures and term contracts have also surged. Open interest across crypto exchanges reached $75 billion, with offshore Binance and U.S.-based CME seeing the largest volumes, based on data from Amberdata. Many short positions were closed as the token trended higher, reflecting the scale of the rally.

Low liquidations and Uptober momentum trigger rally in stocks too

This rally is different from many in the past because liquidations remain limited, with only $283 million wiped from crypto bets in the past 24 hours, far lower than the nearly $2 billion lost in a single day in late September during a sharp price drop. That September event was one of the year’s biggest one-day liquidations, based on Coinglass data.

Analysts see potential for more gains if macro conditions hold steady. “If all goes well around macro updates and data releases, we could see a prolonged run into the end of the year,” said Adam McCarthy, research analyst at Kaiko.

October has historically been Bitcoin’s strongest month. Over the last decade, it has delivered average gains of 22.5%, Bloomberg data showed. Crypto traders call it “Uptober” for this reason.

Other cryptos also moved on Monday. Ether rose about 5% to $4,700, while XRP edged just above $3. Gold joined the rally too, reaching a record above $3,900 per ounce, extending its months-long climb.

Equities mirrored the crypto surge. The S&P 500 closed at 6,740.28, up 0.36%, while the Nasdaq Composite ended at 22,941.67, rising 0.71%. The Dow Jones Industrial Average fell 63.31 points, or 0.14%, to close at 46,694.97, dragged by Sherwin-Williams and Home Depot. The Russell 2000 crossed 2,500 for the first time, closing at a record 2,486.36, up 0.4%.

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