Daily Crypto Signals: Bitcoin Smashes $125K Record, Altcoin Season Gains Momentum
Bitcoin reached a historic milestone above $125,000 while crypto investment products recorded unprecedented $5.95 billion weekly inflows
Quick overview
- Bitcoin surpassed $125,000 for the first time, closing the week at $123,500, indicating a new era of price discovery.
- Crypto investment products saw record inflows of $5.95 billion, driven by concerns over a US government shutdown and dovish monetary policies.
- The TOTAL3 market capitalization reached an all-time high of $1.18 trillion, signaling the emergence of an altseason as capital flows into riskier digital assets.
- USDT dominance fell by 11.8%, suggesting a shift from stablecoins to higher-risk altcoins, although caution is advised as the altseason indicators are not fully developed.
Bitcoin BTC/USD reached a historic milestone above $125,000 while crypto investment products recorded unprecedented $5.95 billion weekly inflows, driven by US government shutdown concerns and dovish monetary policy expectations. Meanwhile, altcoin markets are showing strong signs of an emerging altseason, with TOTAL3 market capitalization hitting a record $1.18 trillion and USDT dominance plummeting 11.8% as capital rotates into higher-risk digital assets.
Crypto Market Developments
Last week, the cryptocurrency market began a strong bullish phase. This was shown by record-breaking institutional inflows and regulatory changes on many fronts. The European Union moved forward with proposals to put all crypto monitoring under ESMA, moving away from the present MiCA framework’s inefficient system of separate state supervision. Verena Ross, the chair of ESMA, said that the European Commission is working on plans to move oversight of crypto exchanges and operators from national regulators to a single EU authority. The goal is to create a more integrated and globally competitive financial sector.
The GENIUS Act, which focuses on stablecoins, was passed in July in the United States. It is predicted to cause a lot of problems for traditional banks. Tushar Jain, co-founder of Multicoin Capital, says that the new law will cause a lot of deposits to leave regular bank accounts and move into stablecoins with greater yields. This will be “the beginning of the end for banks’ ability to rip off their retail depositors with minimal interest.” He thinks that big tech companies like Meta, Google, and Apple would use their huge distribution networks to directly compete with banks for retail deposits. They will provide better stablecoin yields, rapid settlement, and 24/7 payment options.
Bitcoin Breaks Through $125,000 Barrier
Last week was a big week for Bitcoin. On Saturday, it reached a new all-time high of over $125,000. On Sunday, it closed the week at $123,500, its highest weekly closing ever. This historic performance demonstrated that BTC had entered a new era of price discovery, and the cryptocurrency showed amazing structural strength as it consolidated near its top levels. Three important technical indicators showed that buyers were still in charge of the rally. For example, Bitcoin’s price was pushing against the upper boundary of the 21-day Donchian channel at $125,200, and a structural shift composite reading of +0.73 showed that buyers were in control and pullbacks were controlled.
Billionaire investor Paul Tudor Jones said that Bitcoin’s rise was based on solid reasons. He said that even though the markets are doing well, they are still far from being in a bubble. Tudor Jones said that the US government’s growing fiscal issue was a reason for risk-on assets to rise. He pointed out that the “One Big Beautiful Bill” signed in July would produce a $2.1 trillion deficit by 2029.
Tudor Jones suggests putting money into growth stocks, gold, and Bitcoin as a way to protect against inflation and fiscal stress. This is because US debt interest is forecast to go over $1 trillion a year for the first time and the debt-to-GDP ratio is expected to reach 127% by 2026. He thinks there will be a “huge rally” that may be “much more potentially explosive than 1999,” but he thinks the markets require more regular investors before they reach their peak.
Altcoin Season Shows Clear Emergence
The TOTAL3 measure for the cryptocurrency market hit an all-time high of $1.18 trillion on Monday, which is more than its previous top from 2021. This is strong evidence that an altseason is on the way. This benchmark, which shows the total market value of all cryptocurrencies excluding Bitcoin and Ethereum, also had its highest weekly close on Sunday. This shows that the digital asset ecosystem is gaining speed. The performance data for the top 100 cryptocurrencies showed that the total returns over the past three months were more than six times higher than Bitcoin’s gains. This means that a lot of money has moved into riskier altcoin positions.
USDT dominance was another important sign of how the market was changing. It dropped 11.8% in the preceding week, from 4.74% to 4.18%. This big drop in Tether’s market share usually means that investors are shifting money out of stablecoins and into riskier assets in search of bigger returns as trust in the market grows. Several big cryptocurrencies, in addition to Bitcoin, drew a lot of institutional interest. Ethereum ETH/USD ETPs had $1.48 billion in inflows, bringing the total for the year to far to a record $13.7 billion, almost three times the sum for the previous year. With $706.5 million in ETP inflows, Solana SOL/USD came in third. XRP XRP/USD added $219.4 million, breaking both assets’ previous records.
But you should still be careful because the altseason stats are not fully developed yet. The altcoin season index is currently at 69%, which is close to but not quite the important 75% level that would show that altcoins are becoming more popular. Also, only 60% of the average returns from the top 100 assets right now come from altcoins. This is lower than the 80–90% range that usually marks the beginning of an established altseason.
CryptoQuant research also showed that exchanges had lost $4 billion in net ERC-20 stablecoin since late September, with Binance being responsible for $3 billion of this loss. These big withdrawals, which commonly happen after the market goes up as investors take profits, lower the amount of “dry powder” available on exchanges and could limit buying power in the near term. This could make the market more vulnerable to short-term corrections before the altseason actually starts.
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