Bitcoin broke through resistance and hit a record $124,500 on Coinbase today. The move came after nearly two weeks of testing the same level.

The rally unfolded amid what is now the longest U.S. government shut down in history under the 45th and 47th president, Donald Trump. Lawmakers failed to agree on funding, and by Wednesday the shutdown officially began.

The timing pushed investors toward decentralized assets. Bitcoin jumped 14% in just a week. Traders wanted a hedge as Washington failed to govern. The shutdown added more stress to a market already on edge.

Bitcoin rises as shutdown and politics collide

Geoff Kendrick from Standard Chartered said, “The shutdown matters this time around.” He noted that during Trump’s last shutdown from December 22, 2018, to January 25, 2019, Bitcoin barely moved because it was “in a different place than now.”

This time, the crypto is reacting directly to political risks. Geoff added, “However, this year bitcoin has traded with ‘US government risks’ as best shown by its relationship to US treasury term premium.”

Standard Chartered had predicted less than two days ago that Bitcoin was about to set a new high. They also said the coin could reach $135,000 soon after.

But traders are also moving into other assets. Spot gold surged 0.5% to $3,876.55 per ounce on Friday, capping a weekly gain of more than 2%. The demand for havens reflects the same pressures driving crypto higher.

Trump, speaking during the standoff, warned that benefit programs could face cuts if no deal is reached. He threatened reductions for what he called “large numbers of people.” The remarks only fueled more concern about instability.

At the same time, Bitcoin has climbed about 30% in 2025. More Wall Street firms are adding it to portfolios, treating it as a credible allocation. Global investors are also shifting, seeing it less as a trading toy and more as part of a larger strategy.

On-chain data shows what big holders, or whales, are doing. The 30-day metric that tracks balances shows a sharp decline through September 2025. Whales sold a significant amount during the past month, creating downward pressure. Charts showed a red zone of heavy selling.

But signs of exhaustion are clear. As prices climbed, whale selling slowed down. In early October, the pace eased. Data shows the purple zone narrowing, a signal that the selling pressure is fading. Whales have been net sellers for weeks, but now there’s a hint they might be shifting into a new re-accumulation phase.

If that continues, it could backstop the short-term rally. For now, the market has shown that even during political gridlock, Bitcoin can set records while traditional systems stall.

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