Bitcoin over $120,000: A glimmer of hope for investors!

Bitcoin over $120,000: A glimmer of hope for investors!

In an exciting development in the crypto market, the Bitcoin price rose above the $120,000 mark again on Thursday, October 2, 2025. In the evening the price was around $120,220, after Bitcoin was temporarily trading at around $118,000 during the day. Even though the all-time high of just under $125,000, which was reached in August, has not yet been exceeded, current trends show that the upward movements may not be over yet. Loud Nah This price increase is primarily supported by expectations of impending interest rate cuts in the USA.

What drives the Bitcoin price? Growing institutional demand for cryptocurrencies, particularly through regulated investment products such as ETFs, is a significant factor. Particularly insightful is a commentary from Emden Research, which explains that the government shutdown in the US is undermining confidence in government stability and favoring decentralized systems like Bitcoin. This development is causing more and more companies and sovereign wealth funds to show interest in cryptocurrencies, which is also reflected in a market capitalization of over 17 percent for Bitcoin, which is now held by these investors.

Market analysis and future outlook

The market mood remains optimistic. Rachael Lucas, crypto analyst at BTC Markets, highlights that the Bitcoin price is expected to continue rising until the end of the year. She speaks of a likely consolidation phase between $120,000 and $125,000. The fundamentals for further price gains also look rosy: tight supply and high demand lead to a stable price increase. Bitcoin spot ETFs recorded inflows of over $3.6 billion last month, demonstrating the level of interest from investors. Loud The shareholder Many investors are increasingly seeing Bitcoin and Ethereum as core components of their portfolios.

But there are also warning signs. The Federal Reserve plans to cut interest rates on September 17, according to an analysis by InvestX could influence the Bitcoin price in the short term. However, JP Morgan warns of a potential “sell the news” effect that could lead to a market collapse following the announced interest rate cut. Historically, September and October are often volatile months, and the connection between financial markets and Bitcoin is strong.

Practical tips for investors

Investors are advised to prepare for the uncertainties ahead. Active risk management and hedging strategies are now crucial. In addition, leverage exposure should be reduced and diversification between Bitcoin, Ethereum and other uncorrelated assets should be considered. Despite the volatile times, the long-term outlook remains positive, which is why many investors remain optimistic.

The crypto market remains exciting and turbulent at the same time. In the coming weeks and months it will become clear whether the Bitcoin price will continue to stay in the fast lane or whether external circumstances will cause a setback.