Bitcoin hits new all-time high following largest ETF inflow in 2025 and strong open interest growth

Bitcoin (BTC) climbed to a record high above $126,100 on Monday, smashing its previous record of $125,708 in less than 24 hours, according to Binance data. The top crypto is up about 2.5% over the past 24 hours, stretching its weekly gains above 10%.

BTC/USDT daily chart

What's propelling Bitcoin to a new high?

The new high comes after US spot Bitcoin exchange-traded funds (ETFs) recorded net inflows of $3.24 billion last week, their largest in 2025 and second-largest on record.

Bitcoin derivatives also indicate a rising risk appetite, as BTC futures open interest across exchanges tracked by Coinglass surged to a new high of 761,680 BTC on Monday. Open interest is the total worth of outstanding contracts in a derivative market.

BTC Open Interest. Source: Coinglass

The renewed interest in Bitcoin follows the rising attractiveness of safe-haven assets —including Gold— after the US government shutdown last Wednesday. BTC gained about 4% the same day, its highest daily performance since July 10.

The shutdown also came at the beginning of October, a month that has historically been positive for Bitcoin in the past six years.

"The timing of the shutdown, paired with October's historically bullish seasonality, may have provided the spark for this sustained move," wrote trading platform QCP analysts in a Monday note.

In addition, the Federal Reserve (Fed) also reduced rates in September, with strong expectations of two more cuts before the end of the year. JP Morgan analysts predicted in a report last week that a further reduction in interest rates could boost Bitcoin to $165,000.

However, QCP analysts cautioned that the recent rise in leverage accompanying the price move increases the risk of a "sharp washout," as seen two weeks ago when nearly $3 billion worth of long positions were wiped out from the crypto market.

Bitcoin is changing hands at $125,700 at the time of publication.