Analysis: U.S. government shutdown and macro environment boost Bitcoin rally; if it holds the $120,000 level, it may break $150,000 by year-end

Jinse Finance reported that the bitcoin price hit a new all-time high of $125,700 today, with its market capitalization surpassing $2.5 trillions for the first time. Several market analysts pointed out that this round of increase has been driven by macro factors such as the first U.S. government shutdown since 2018 and loose liquidity, highlighting bitcoin's attribute as a "store of value." Fabian Dori, Chief Investment Officer at Sygnum Bank, stated that the U.S. political deadlock has sparked increased investor interest in decentralized assets, while the loose liquidity environment and bitcoin's improved performance relative to stocks and gold have also fueled capital inflows into the digital asset market. Jake Kennis, Senior Researcher at Nansen, noted that if the government resumes operations soon and prompts the Federal Reserve to adopt a more dovish stance, it could further benefit the crypto market. However, he believes it is still too early to confirm a market bottom, and bitcoin needs to remain stable above key support levels for several weeks. On-chain data shows that bitcoin is entering a new "accumulation phase," with whale selling pressure decreasing and long-term holder selling weakening. Analysts expect that if bitcoin can continue to hold above the $120,000 mark, its price could break through $150,000 by the end of 2025.