Bitcoin at record high, partly due to fears of dollar devaluation

Bitcoin reached a new all-time high when its price rose to $125,689 in Asia on Sunday, surpassing the record set on August 14. According to Bloomberg, the growth of the world's largest cryptocurrency is linked to the increasing risk appetite of investors.

Another reason is the uncertainty caused by the suspension of US government activities, known as the shutdown, which has increased demand for alternative investments.

According to analysts, the market is responding to fears of a possible “devaluation of the dollar,” which is promoting investment in Bitcoin as a digital store of value.

“With many assets, including stocks, gold, and even collectibles such as Pokémon cards, reaching historic highs, it's not surprising that Bitcoin is benefiting from the narrative of dollar devaluation,” said Joshua Lim, co-head of markets at crypto brokerage firm FalconX.

Historically, October has been favorable for Bitcoin—nine of the last ten years have ended with gains, earning it the nickname “Uptober.” This year, the cryptocurrency has already seen an increase in value of more than 30 percent.

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