（Singapore, 07.10.2025）Bitcoin is back in the headlines — and this time, traders are dreaming big. The world’s largest cryptocurrency surged past $125,000 over the weekend, hitting a fresh all-time record and reigniting speculation that prices could soar to $140,000 before the year ends.
The rally, which caught many traders by surprise, has been fueled by a mix of institutional demand, favorable U.S. policies, and a rush into safe-haven assets amid ongoing uncertainty in global markets.
Bitcoin first broke through the $125,000 mark late Saturday in New York trading — a move helped by thin weekend liquidity and the 24-hour nature of crypto markets. By Monday, it had touched another record high of $125,865, up roughly 2.5% for the day and more than double its value from a year ago.
“It’s been an incredible run,” said Greg Magadini, director of derivatives at crypto analytics firm Amberdata. “The rally has caught people off guard. We’re seeing record levels of open interest in Bitcoin futures and perpetual contracts, even after a wave of buy-to-close liquidations. It doesn’t look like we’ve reached the top yet.”
Traders Eye $140,000
According to data from Deribit by Coinbase, options traders are increasingly betting on Bitcoin’s rise to $140,000 by the end of the year. That’s where the largest cluster of open interest for call options now sits — a sign that many traders expect prices to keep climbing.
At the same time, there’s been a small uptick in demand for put options, which allow holders to profit if prices fall. Analysts say that shows some traders are hedging their bets in case the market overheats.
“Bulls have their eyes on $130K and beyond,” said Jean-David Péquignot, chief commercial officer at Deribit. “But if we see a sudden spike in put volume, that could be a red flag for short-term corrections. Volatility will likely stay elevated.”
The latest surge has been powered in part by a flood of institutional money flowing into Bitcoin exchange-traded funds (ETFs). Last week alone, investors poured $3.2 billion into 12 U.S.-listed Bitcoin ETFs — the second-highest weekly total since they launched in 2024.
BlackRock’s iShares Bitcoin Trust set a new record of $49.8 billion in notional open interest on Friday, according to Bloomberg data. “The spot market is driving this rally,” said Magadini. “We’re seeing sustained buying from funds and retail alike.”
The timing of Bitcoin’s surge is no coincidence. The U.S. government shutdown that began on October 1 has frozen key economic data releases and rattled confidence in traditional markets. Many investors are turning to assets they perceive as safer — and this time, Bitcoin is joining gold as a beneficiary.
Gold also hit a record high on Monday, climbing above $3,900 per ounce, extending a months-long rally. “When traditional markets are uncertain, Bitcoin tends to act as a digital hedge,” said Adam McCarthy, a research analyst at Kaiko. “If macro conditions remain favorable, we could see this run continue into year-end.”
Derivatives Market Heating Up
In the derivatives world, Bitcoin futures and perpetual contracts — which allow traders to use leverage to amplify returns — have also seen heavy activity. Open interest across all exchanges has jumped to $75 billion, with major platforms like Binance and CME posting some of the biggest volumes.
Interestingly, unlike previous rallies that were fueled by aggressive leveraged bets, liquidations have been relatively mild this time. About $283 million in crypto positions were liquidated over the past 24 hours — a fraction of the nearly $2 billion wiped out during a sharp selloff in late September.
“The market feels more balanced now,” said McCarthy. “We’re not seeing the extreme leverage or panic liquidations that often mark short-term tops.”
For long-time crypto fans, the timing of this rally might feel familiar. October, often nicknamed “Uptober” by traders, has historically been Bitcoin’s best month. Over the past decade, the coin has gained an average of 22.5% during October, according to Bloomberg data.
That seasonal optimism, combined with improving sentiment and strong inflows, is giving bulls reason to believe the rally isn’t done yet. “If all goes well around macro updates and data releases, we could see a prolonged run into the end of the year,” McCarthy added.
Dollar Weakness Adds to the Momentum
Bitcoin’s latest rally has also coincided with a weaker U.S. dollar. The dollar index, which tracks the greenback against a basket of major currencies, is down nearly 10% this year. Analysts say uncertainty around President Donald Trump’s new trade tariffs and their economic impact has pushed investors to diversify away from U.S. assets — boosting demand for alternative stores of value like Bitcoin.
“Bitcoin is becoming the new hurdle rate,” said Anthony Pompliano, CEO of Professional Capital Management, in a note to investors. “If you can’t outperform it, you might as well buy it. The next 12 weeks are going to be very exciting for Bitcoin holders.”
Bitcoin’s momentum has also lifted other major cryptocurrencies. Ether, the second-largest token by market value, rose about 5% to $4,700 on Monday, while XRP edged slightly higher to just above $3.
Still, analysts caution that markets could get choppy as prices approach new psychological milestones. “Volatility is part of Bitcoin’s DNA,” said Péquignot. “But so is resilience. And right now, both traders and institutions seem willing to ride out the swings.”
