ETF Fuel Bitcoin Surge To All-time High

While traditional financial benchmarks falter, bitcoin establishes itself as a new standard. Monday evening, the crypto crossed a symbolic threshold by reaching $126,069, after a first record at $125,000 the day before. This rapid rise occurs amid a climate of distrust towards traditional assets and against the backdrop of a declining dollar. More than just a peak, this movement reflects a fundamental dynamic that redefines the hierarchy of values in global markets.

Bitcoin at $126,000, a rise driven by flows and macroeconomics

This Monday evening, bitcoin reached a historic high at $126,069, after crossing $125,000 as early as Sunday. This rise, observed by traders, comes after the crypto had briefly fallen below $110,000 at the end of September.

Since then, it has recorded a 13 % rise in less than two weeks, now showing an increase of more than 33 % since the beginning of the year. “Bitcoin has jumped since it briefly dropped below $110,000 a little over a week ago”, explained David Morrison, senior analyst at Trade Nation.

Anthony Pompliano, founder of Professional Capital Management, summed up the current buying pressure: “Bitcoin is the benchmark rate. If you can’t beat it, you have to buy it”.

Behind this price surge, several fundamental dynamics combine :

• A notable weakening of the US dollar, whose index (DXY) remains stable at 98.09 but shows a nearly 10% decline since January ;

• Massive inflows into Bitcoin ETFs, with $3.2 billion injected into a dozen products last week, the second highest level since their launch in 2024 ;

• Growing interest in derivatives products, with $75 billion of open interest on perpetual and futures contracts, according to Amberdata. Binance and CME account for the majority of volume ;

• A healthier market, characterized by limited liquidations at $283 million over 24 hours, far from the $2 billion recorded in a single day in September ;

• Favorable seasonality, notably in October, nicknamed “Uptober” by the community, with an average performance of +22.5 % over the past ten years, according to Bloomberg.

These combined elements outline a context of bullish consolidation, less speculative than during previous bull runs, and potentially more sustainable if macroeconomic fundamentals align.

Bitcoin reshuffles the cards of the American dream

While bitcoin climbs to new heights, another transformation is taking place: that of the social perception of the asset. Indeed, the American dream no longer necessarily passes through home ownership, but through holding bitcoin.

One data point illustrates this shift. Since 2020, housing prices have increased by more than 50 % in dollars, according to the S&P CoreLogic Case-Shiller index. Yet in bitcoin value, they have dropped by nearly 90 %.

In 2020, an average house in the United States was worth about 40 BTC. Today, less than 5 BTC suffice. This shift reveals a growing gap between holders of traditional assets and crypto holders, with bitcoin establishing itself as a more accessible alternative for younger generations.

This evolution accompanies a profound paradigm shift. For Millennials and Gen Z, bitcoin offers features that real estate can no longer provide in a context of high interest rates and weakened purchasing power: liquidity, portability, passive income via staking or ETFs, without the physical constraints of real estate.

Digital ownership emerges as a modern alternative to physical real estate. This change is supported by renewed optimism among holders. The investor sentiment index has turned green (6.77), proof of regained confidence. The return of strong market volume and institutional accumulation feed this conviction. Some analysts already foresee a move towards $130,000–135,000, even $150,000 to $180,000 by year-end if the current trend persists.

Beyond the financial aspect, this moment could mark a generational and societal turning point. If bitcoin continues to gain institutional recognition and deliver superior performance to classic assets, it could sustainably establish itself as the new standard of wealth, as evidenced by its correlation with gold. However, such a transformation is not without risks: a too rapid influx could exacerbate volatility or trigger regulatory backlash. The historically favorable fourth quarter for BTC could confirm or invalidate this trend.