Bitcoin broke through $125,000 and reached a record high, and short sellers were crushed

Nakamoto 2025-10-5 22:49 43379人围观 BTC

Digital gold Bitcoin once again used unstoppable momentum to write a new price legend on October 5. $125,000! On October 5, 2025, Bitcoin once again set a new historical high record. According to China Business News, Bitcoin exceeded US$125,000 per coin t

Digital gold Bitcoin once again wrote a new price legend on October 5 with unstoppable momentum.

$125,000! On October 5, 2025, Bitcoin once again set a new historical high record.

According to China Business News, Bitcoin exceeded US$125,000 per coin that day, setting a record high, with an intraday increase of 2.5%. This breakthrough is not an isolated incident, but a continuation of Bitcoin’s recent strong rise. Earlier in the day, Bitcoin had continuously exceeded the two major levels of US$123,000 and US$124,000.

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1. Rising momentum: continuous breakthrough of key resistance

Bitcoin showed stunning upward momentum in early October. On the morning of October 5, Bitcoin first broke through the $123,000 mark, with an intraday increase of 1.19%.

Shortly afterwards, it continued to rise above $124,000, with an increase of 1.41% in the past hour.

This rise is not sudden and accidental, but a concentrated explosion of previously accumulated potential energy. As early as October 2, Bitcoin had exceeded the $121,000 mark, soaring nearly 3% in 24 hours.

At that time, well-known cryptocurrency analyst Benjamin Cowen predicted that BTC prices would continue to maintain an upward trend in the next three months.

2. Short collapse: Highly leveraged traders suffered heavy losses

As the price of Bitcoin surged, short traders in the market suffered heavy losses.

According to AiCoin data, the liquidation amount of contracts across the entire network reached US$20.53 million in the past hour, of which short orders liquidated as much as US$18.85 million, accounting for 91.8% of the total liquidation amount. Bitcoin itself liquidated $9.67 million during this period.

What is even more shocking is that PANews reported that the entire cryptocurrency market contract liquidation reached US$73.6718 million in the past hour, of which short positions liquidated at US$69.7562 million, far exceeding the liquidation of long orders at US$3.9156 million. The liquidation amount of BTC alone reached US$51.457 million, and the liquidation amount of ETH reached US$13.5457 million.

These data reflect the intensity of market fluctuations and the lack of preparation of most traders for this rising market.

3. Driving factors: Institutional funds dance with macro uncertainty

Institutional demand continues to rise

Behind Bitcoin's current breakthrough to new highs is the growing demand from institutional investors. Data shows that US spot BTC ETF issuers recorded a net cash inflow of approximately US$675 million on a recent Wednesday.

What is even more striking is that after Meta Planet announced the purchase of more than 5,000 Bitcoins, many companies began to follow up and implement Bitcoin financial plans. The large-scale entry of institutions has brought unprecedented financial support and confidence to the Bitcoin market.

Open interest increases

According to market data provided by CoinGlass, Bitcoin’s open interest (OI) has recovered significantly in the past few days, rising from $77 billion last week to approximately $86 billion.

Historically, Bitcoin prices typically rise as open interest increases, with growth in this metric signaling increased market participation and greater inflows.

macroeconomic uncertainty

The current macroeconomic environment also provides fertile ground for Bitcoin to rise. The risk of a U.S. government shutdown and rising geopolitical tensions between Russia and Ukraine have investors looking for safe havens beyond traditional assets.

Against this background, Bitcoin is gradually becoming a powerful tool for hedging the risk of fiat currency inflation.

Technical breakthrough

From a technical analysis perspective, Bitcoin managed to break through key resistance levels between $117,000 and $120,000 on the daily chart.

The price rebounded significantly from the daily 100-day moving average (SMA) and broke above the descending logarithmic resistance trend line formed over the past two months, a technical breakout that further strengthened the bullish sentiment in the market.

4. Institutional Outlook: Wall Street is optimistic about Bitcoin’s mid- to long-term performance

In the face of Bitcoin’s strong moves, several Wall Street institutions have updated their price predictions.

Citigroup has adjusted its price target forecast for Bitcoin, lowering its price target for the end of the year from $135,000 to $133,000, but at the same time raising its 12-month BTC price target to $181,000.

JPMorgan Chase reiterated its view that Bitcoin is undervalued relative to gold and gave a mid-term target of approximately $165,000. It is worth noting that gold prices also hit a weekly record high in mid-August 2025.

Geoff Kendrick, head of digital asset research at Standard Chartered Bank, took a more optimistic view, giving a near target of $135,000 and saying $200,000 could be achieved by the end of 2025.

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With Bitcoin holding on to the $125,000 mark, Wall Street analysts have set their sights higher. Citigroup raised its 12-month price target for Bitcoin to $181,000, and JPMorgan Chase also gave a mid-term target of about $165,000.

Bitcoin’s strong rally has pushed the cryptocurrency’s market capitalization to unprecedented heights.

The continued inflow of institutional funds, macroeconomic uncertainty and comprehensive technical breakthroughs have jointly built a solid foundation for this historic rise.

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