Bitcoin Hits New ATH at $125,750 as Institutions Add $1.2B in BTC to Coffers Over the Week Amid a Weakening Dollar

On Sunday, October 5, 2025, Bitcoin Hits New ATH (All Time High) of $125,750, surpassing its previous peak price of $124,466 from mid-August. The apex cryptocurrency climbed more than 13% over the past week, rebounding from $109,000 at the end of September to climb past $125,000 yesterday.

This bullish trend reversal is being driven by macroeconomic uncertainties, such as the ongoing government shutdown in the United States and a weakening dollar, which is increasing asset prices, and the “Uptober” season narrative, a term coined by traders to describe bitcoin’s pattern of strong gains in every October, bar one, since 2013. 

Analysts suggest that the new ATH was likely to be caused by record inflows into spot Bitcoin exchange-traded funds (ETFs) and allocations made by digital asset treasury (DAT) companies.

Analysts Speculate ETFs and Treasury Companies are Driving the Bitcoin Market

Through last week, DATs purchased more than 6,702 BTC, worth roughly $828.4 million, with Japanese hotel group Metaplanet leading the race by adding 5,258 BTC to its growing bitcoin treasury. According to BitcoinTreasuries data, 14 companies increased their holding in the last 7 days, with the top 100 publicly traded bitcoin treasury firms holding a combined 1,038,119 BTC, worth $128.47 billion at current exchange rates.

Meanwhile, U.S. spot Bitcoin ETFs had one of their best trading weeks after attracting $3.2 billion worth of inflows. This figure was only second to the record inflow of $3.38 billion seen in the week ending November 22, 2024.

Vincent Liu, chief investment officer at quantitative trading firm Kronos Research, noted that while factors like declining exchange supply, a weaker dollar, and macro uncertainty played a part in the price increase, it was strong institutional demand through the ETFs that reinforced the bullish momentum for bitcoin over the weekend.

Crypto analyst and trader Will Clemente also echoed Liu’s sentiments, highlighting that the most bullish aspect of the latest rally is that it wasn’t driven by treasury companies or perpetual traders, but rather by spot ETF buyers, who are likely to be portfolio managers and institutions that view bitcoin as a source of rotating capital from commodities and small-cap assets.

Institutions Buy More Bitcoins than Miners’ Daily Supply Average

Iliya Kalchev, an analyst at digital asset platform Nexo, noted that the uptick in demand for bitcoin ETFs stems from the increased odds of further interest rate cuts by the U.S. Federal Reserve, as four-week inflows into the products providing investors exposure to BTC price performance without requiring them to directly hold the asset closed in on $4 billion. According to him, at this rate, cumulative ETF inflows during Q4 2025 could be worth 100,000 BTC, or $12.4 billion, which is double the amount of new bitcoins issued in 90 days. Bloomberg analyst Eric Balchunas said that the Bitcoin Hits New ATH coincided with a wild run for bitcoin ETFs last week, as yearly inflows reached $24 billion.

Institutions have been snapping up more bitcoin than miners have supplied this year. On average, miners generate roughly 900 BTC ($111.64M) per day; however, a recent report from River found that bitcoin treasury companies and ETFs have acquired 1,755 BTC ($217.77M)  and 1,430 BTC ($177.43M), respectively, per day on average in 2025. Corporate treasuries now control 6.6% of bitcoin’s 21 million-coin total supply, while ETFs hold more than 1.5 million BTC, worth $188 billion, representing 7.2% of the total supply.

Liu said that Bitcoin’s fourth-quarter outlook will be shaped by institutional adoption, with factors such as a prolonged low-interest rate macro environment, regulatory clarity, shrinking exchange supply, and its role as a fiat debasement hedge acting as support. 

“Thinner liquidity and ETF inflows will fuel rallies and volatility,” he added.

USD is Going Through One of Its Worst Periods Since 1973

Kobeissi Letter analysts have signalled a “generational” macroeconomic shift, as the US dollar is on track for its worst year since 1973, down over 10% year-to-date. Traders are pricing in risk assets and safe-haven assets amid the Federal Reserve cutting interest rates to curb rising inflation and a weakening labor market in the United States. The dollar has lost 40% of its purchasing power since the year 2000, while at press time, bitcoin is up 12,199,900% since reaching parity with USD for the first time in 2011.

Catalysts such as the ongoing government shutdown, massive downward revisions of jobs numbers, interest rate cuts, and eroding dollar value have raised concerns about the strength of the U.S. economy. The Bitcoin Hits New ATH moment comes amid these developments, as the shutdown, which began last Wednesday due to Republican and Democrat lawmakers in Congress failing to reach an agreement on a spending bill, has entirely closed down operations at regulatory agencies and bureaucracies or forced them to operate on a significantly lower budget and with minimal staff.

This political dysfunction has renewed investor interest in bitcoin as a store-of-value asset, as faith in traditional monetary institutions continues to falter.

At the time of writing, Bitcoin (BTC) is trading at $123,963 – down 0.9% in the last 24 hours.