Bitcoin Rises After Record High as Cryptos Trade on Political Uncertainty. XRP, Ether Up.

Bitcoin, the world’s largest cryptocurrency, hit a record high of more than $125,000 over the weekend (Marco Bello/Getty Images)

Key Points

• Bitcoin’s price rose 1.2% to $124,645 over 24 hours, with a seven-day gain of 8.7% and a 30-day gain of 13%.
• The cryptocurrency reached an all-time high of over $125,000, though reduced Sunday liquidity amplified the move.
• Bitcoin’s increase, along with gold’s 1.4% rise, may be linked to the ongoing government shutdown and concerns about fiat currencies.

The price of Bitcoin was rising after pulling back from a fresh record high over the weekend with investors seemingly unfazed by the continuing government shutdown, now entering its sixth day.

The world’s largest cryptocurrency touched an all-time high of more than $125,000 over the weekend before paring gains, however, investors should consider the reduced liquidity on Sunday that amplified the move, noted FxPro analyst Alex Kuptsikevich.

Over a 24-hour period, Bitcoin is up 1.2% to $124,645, according to CoinDesk data. Monday’s early move brings the digital token’s seven-day gain to 8.7% and 30-day gain to 13%. Since the start of the year, Bitcoin is up about 30%.

Among other cryptocurrencies, Ether rose 0.5% over the past 24 hours, while XRP fell 0.7%. Solana edged up 0.2%. They are all in the green over the past seven days.

Futures tracking the S&P 500 and Nasdaq 100 rose 0.3% and 0.7%, respectively, early Monday.

While the market is still on a bullish trajectory, some investors are seeking safer alternatives as political concerns take center stage both in the U.S. and abroad.

Gold , a traditional safe-haven asset, also rose, with futures up 1.4% early Monday.

“One of the likely reasons for the growth of cryptocurrencies in the last week was the suspension of the U.S. government’s work on 1 October,” Kuptsikevich said Monday. “During three of the last five shutdowns, there was also an increase in Bitcoin, as traders fear a fall in the value of fiat currencies, which also plays into the hands of gold and stocks.”

The dollar climbed 0.7% against a weighted basket of other currencies but remains down nearly 10% since the start of the year.

Write to Elsa Ohlen at elsa.ohlen@barrons.com