Bitcoin Hits All-Time High, Surpassing $125,700, Market Cap Breaks $4 Trillion

Bitcoin hit a record high of $125,708 on October 5, 2025, causing the crypto market cap to exceed $4.35 trillion.

This surge underscores increasing institutional interest and tight supply dynamics, significantly affecting market behaviors, including asset rallies and ETF inflows.

Bitcoin Surpasses $125,000 Amid Institutional Demand

Bitcoin’s peak at $125,708 resulted from significant institutional engagement, propelled by leading spot Bitcoin ETFs attracting over $3.2 billion in three days. Binance confirmed this peak, emphasizing the broader market impact through reduced Bitcoin availability. Matthew Sigel, Head of Digital Asset Research at VanEck, observed exchanges running low on Bitcoin.

Subsequent market fluctuations saw Bitcoin retreating slightly to $124,900. An analyst like Sigel also shared recent insights noting, “Exchanges are running out of Bitcoin.”

Community reactions were robust, with Nate Geraci discussing the general public’s lack of Bitcoin awareness despite its surging value. Prominent crypto figures highlighted the potential for continued bullish trends pending strategic price levels.

Market Data Reveals Shifts in Bitcoin’s Positioning

Did you know? In previous all-time highs, Bitcoin withdrawals from exchanges often signaled reduced trade liquidity and heightened price volatility, trends similarly emerging in recent days.

Bitcoin’s current price hovers at $122,977.05, with a market cap of $2.45 trillion, dominating 58.27% of the market. Recent seven-day gains hit 11.97%, according to CoinMarketCap. The circulating supply is 19,928,203 BTC of the 21 million cap.

Coincu research highlights a shifting landscape with impacts expected on financial markets and regulatory stances. Continued ETF inflows and exchange withdrawals might influence trading volatility, potentially altering Bitcoin’s institutional position and long-term investment sentiment.