Today in crypto, Bitcoin rallied to a new high on Sunday, Stripe CEO says stablecoins will force banks to offer users real interest on deposits, and US-listed spot Bitcoin exchange-traded funds (ETFs) kicked off October with billions in inflows.

Bitcoin rally to $125,000 fueled by US gov’t shutdown, macro factors: Analysts

Bitcoin breached a new all-time high over the weekend, prompting analysts to call for a renewed accumulation phase that could fuel a rally to $150,000 before the end of the year.

Bitcoin (BTC) set a new all-time high above $125,700, and its market capitalization briefly crossed the $2.5 trillion milestone for the first time in crypto history, Cointelegraph reported earlier on Sunday.

The rally was supported by multiple macroeconomic factors, including the recent US government shutdown — the first since 2018 — which some analysts say has renewed interest in Bitcoin’s store-of-value role.

In the past, similar conditions have led to “major price milestones,” according to Fabian Dori, chief investment officer at digital asset banking group Sygnum Bank.

The US government shutdown has “renewed discussion around Bitcoin’s store-of-value role, as political dysfunction underscores interest in decentralised assets,” Dori told Cointelegraph. “At the same time, the broader environment — characterised by loose liquidity conditions, a service-led acceleration in the business cycle, and narrowing underperformance relative to equities and gold — has drawn attention to digital assets,” he added.

Stripe CEO says stablecoins will force banks to offer users competitive interest on deposits

Stripe CEO Patrick Collison said that stablecoins will force banks to offer competitive interest rates to customers due to the rise of yield-bearing stablecoin options.

Collison cited average savings rates offered for customer deposits in the United States and Europe, which all came in well below 1%, as ripe for disruption by stablecoins. He wrote:

“Depositors are going to, and should, earn something closer to a market return on their capital. Some lobbies are currently pushing post-GENIUS to further restrict any kinds of rewards associated with stablecoin deposits. The business imperative here is clear — cheap deposits are great, but being so consumer-hostile feels to me like a losing position.”

The stablecoin market cap crossed $292 billion in October, according to data from RWA.XYZ, as the sector continued to grow following a comprehensive regulatory bill signed into law in the United States.

Bitcoin ETFs kickstart “Uptober” with $3.2 billion in second-best week on record

US-listed spot Bitcoin ETFs began the historically bullish month of October with their second-best week of inflows since launch, signaling renewed investor optimism.

Spot Bitcoin (BTC) ETFs recorded $3.24 billion worth of cumulative net positive inflows over the past week, nearly matching their record of $3.38 billion in the week ending Nov. 22, 2024, according to data from SoSoValue.

The figure marks a sharp rebound from the previous week’s $902 million in outflows. Analysts attributed the turnaround to growing expectations of another US interest rate cut, which has improved sentiment toward risk assets.

Growing expectations of another US interest rate cut triggered a “shift in sentiment,” attracting renewed investor demand for Bitcoin ETFs, “bringing four-week inflows to nearly $4 billion,” Iliya Kalchev, dispatch analyst at digital asset platform Nexo, told Cointelegraph. “At current run-rates, Q4 flows could retire over 100,000 BTC from circulation — more than double new issuance.“

“ETF absorption is accelerating while long-term holder distribution eases, helping BTC build a stronger base,” near key technical support levels, he added.

Continued ETF inflows may provide significant tailwinds for Bitcoin in October, which is the second-best month for Bitcoin in terms of average historical returns, often referred to as “Uptober” by crypto investors.

This week’s $3.2 billion briefly pushed Bitcoin’s price above $123,996 on Friday, marking an over six-week high last seen on Aug. 14 for the world’s first cryptocurrency, TradingView data shows.