Bitcoin experienced a substantial growth of over 5%, surpassing $119,000 during the onset of trading on October 1-2, 2025. This surge was catalyzed by the confluence of macroeconomic, regulatory, and on-chain dynamics enhancing the cryptocurrency’s appeal as a safe haven amidst a US government shutdown.

Interestingly, recent analytics suggest that Bitcoin’s bullish cycle is not yet exhausted.

Behind BTC’s Explosive October Rally

Recent insights from CryptoQuant detailed how negative economic indicators played a pivotal role in Bitcoin’s rebound. Notable points include the ADP report illustrating 32,000 job losses, marking the greatest decline in over two years, alongside postponed nonfarm payrolls. This has led traders to anticipate a likely reduction in Fed rates this October.

A weakened dollar has also strengthened the influx of capital towards Bitcoin. Moreover, regulatory changes have encouraged the recent rally. The SEC’s decision to simplify Bitcoin ETF listing criteria, alongside reviews for assets like Solana and XRP set for this month, has ignited optimism. Nearly $1 billion flowed into spot Bitcoin ETFs in late September, and BlackRock’s fund has reached an impressive $80 billion in assets under management, with indications that Vanguard might reassess its crypto position.

The US Treasury’s declaration that unrealized gains on Bitcoin held by corporations will be exempt from taxation, seen as a transformative policy shift, is anticipated to encourage more companies to hold Bitcoin as part of their reserve assets.

On-chain metrics corroborate this bullish sentiment, with CryptoQuant reporting a drastic reduction in exchange reserves from 2.61 million BTC in early September to 2.49 million by October 1. This drop suggests a robust outflow into cold storage, alleviating immediate selling pressure.

As Bitcoin embarks on what is often labeled its “Uptober” phase and gold achieves new heights, an influx of positive sentiment is sweeping through the cryptocurrency markets.

Quotes

“Bitcoin’s surge was not due to a single factor but the convergence of macro uncertainty, regulatory shifts, institutional adoption, favorable tax policy, and on-chain supply contraction. Together, these forces created the perfect setup for Bitcoin’s decisive move higher, strengthening confidence that the bull cycle still has room to run.”

Crucial Levels For Bitcoin

Analyst CasiTrades has identified the resistance range of $120K-$122K as crucial for determining Bitcoin’s future movements. While Bitcoin seeks to breach this key threshold, CasiTrades highlights this moment as a pivotal opportunity for traders. A successful breakout may pave the way for new record highs, whereas a setback could spark a swift retreat towards $100K or lower. CasiTrades emphasizes the existing scenario combines both substantial risks and rewards, with uncertainty remaining high.