Bitcoin Eyes New Highs as Crypto Market Cap Tops $4.21 Trillion

Bitcoin is marching toward new highs, with the cryptocurrency trading just under $124,000 after a roughly 14% weekly jump. The broad crypto market cap surpassed $4.21 trillion, underscoring the strength of the latest rally.

What’s driving the move
The price surge comes as U.S. markets face a government shutdown. Despite federal agencies furloughs and delayed data releases, Bitcoin has benefited, rising about 8% since the shutdown began. Analysts say the development has spurred risk-on sentiment and shifted attention toward crypto as a potential alternative to traditional policy signals. In parallel, macro conditions in the United States—such as easing inflation and a dovish Federal Reserve stance—have supported appetite for risk assets.

On-chain momentum and demand signals
On-chain data show stronger buying pressure. A taker buy volume spike of more than $1.6 billion occurred in one hour across exchanges, according to analysts. The Coinbase Premium Gap—measuring price differences between Coinbase and Binance—rose to about $92. This is the highest premium since mid-August, suggesting robust US-led demand and steady inflows into crypto markets.

Price-discovery outlook
With Bitcoin hovering near its recent highs, traders expect price discovery to resume next week. Analysts note that $120,000 has turned into a support level, and a sustained move above that area could open the path to new all-time highs. A key near-term resistance sits around $130,000, where heavy selling orders cluster once reached. If demand remains robust and daily closes stay constructive, a continued breakout appears plausible.

Market context and what to watch
ETF inflows have provided a clear tailwind, reinforcing the current risk-on environment. In addition, the broader market’s strength—combined with strong on-chain buying and elevated exchange premiums—points to a sustained upgrade in risk appetite. Yet traders will be watching for the daily close near the resistance zone to confirm momentum can be maintained into the new week.

Bottom line
Bitcoin’s march toward higher ground continues to be supported by on-chain demand, relative calm in macro headlines, and steady market inflows. As price discovery unfolds, traders will look for a break above $130,000 to confirm a fresh leg higher.

Note: This article does not provide investment advice. All trading involves risk, and readers should perform their own research.