Bitcoin soared to a new all-time high on Sunday, breaking past the $125,000 mark amid growing investor interest and shifting market sentiment.

The cryptocurrency climbed to $125,689, surpassing its previous record of around $124,500 set in August.

Bitcoin’s surge comes as investors remain cautious over a potential US government shutdown, pushing demand toward safe-haven assets. Gains in US stocks have also fueled Bitcoin’s rise, according to Bloomberg News.

The report noted that investors have increasingly turned to digital assets while US lawmakers continue to negotiate over funding for the federal government.

US President Donald Trump and his family have also emerged as prominent promoters of cryptocurrencies, engaging in various crypto ventures that have boosted his wealth.

Trump’s pro-crypto stance marks a sharp policy shift from the scepticism seen under his Democratic predecessor, Joe Biden. The US House of Representatives in July passed three landmark cryptocurrency bills — a move analysts say has strengthened market confidence and driven Bitcoin’s price rally.

These regulatory changes have played a key role in propelling Bitcoin’s value to new heights.

“With many assets including equities, gold and even collectibles like Pokemon cards hitting all time highs, it’s no surprise Bitcoin is benefiting from the dollar debasement narrative,” Joshua Lim, co-head of markets at crypto prime brokerage firm FalconX, was quoted by Bloomberg News as saying.