Bitcoin Breaks $116,000 as Crypto Equities and Trading Volumes Surge
Bitcoin surged to a new all-time high as strong ETF inflows, supply constraints, and safe-haven demand driven by U.S. government shutdown fears fueled market momentum.
Bitcoin reached a record $126,223 during Monday’s U.S. session, supported by strong ETF inflows, reduced exchange supply, and heightened demand amid U.S. government shutdown concerns. Ethereum climbed 4% to $4,700, while major altcoins and crypto-related equities also advanced. Deribit CCO Jean-David Péquignot described the rally as a 'perfect storm' of macroeconomic tailwinds, noting technical targets between $128,000 and $130,000, with potential upside to $138,000. Crypto mining stocks gained roughly 10% following news of OpenAI’s multibillion-dollar chip deal with AMD. Combined spot and derivatives trading volumes rose 7.58% in August to $9.72 trillion, marking 2025’s highest monthly total.
- ETF Inflows: Capital entering exchange-traded funds, indicating increased investor demand for the underlying asset, such as Bitcoin.
- Safe-Haven Demand: Investor behavior favoring assets perceived as stable during economic or political uncertainty.
- Derivatives Trading: Financial trading using contracts such as futures or options whose value is derived from underlying assets like cryptocurrencies.