Bitcoin edged lower Monday after briefly crossing $125,000, as traders took profits following one of the strongest weekly rallies of 2025. The retreat came despite continued optimism around institutional inflows and growing expectations of further U.S. rate cuts.
The world’s largest cryptocurrency was last down 1.6% at $123,716 by 01:50 ET (05:50 GMT), after touching an all-time high of $125,617 on Sunday. Bitcoin is up 11% over the past week and more than 30% year-to-date, underscoring its resilience even amid broader macroeconomic uncertainty.
ETF Inflows Fuel Rally Momentum
Fresh capital inflows into U.S. spot Bitcoin exchange-traded funds (ETFs) have been a key catalyst behind the latest rally. Data from SoSoValue showed a record $3.24 billion in net ETF inflows last week — the largest weekly addition in 2025.
Analysts say the inflows reflect renewed institutional interest, with investors favoring regulated investment vehicles over direct token exposure. The inflows also coincide with rising concerns over the U.S. government shutdown, now entering its second week, which has delayed key economic data releases and fueled expectations for a more dovish Federal Reserve stance.
Market strategists have dubbed the move a “debasement trade” — a shift into hard assets like gold and Bitcoin amid eroding confidence in fiat currencies.
Key drivers behind Bitcoin’s strength:
- $3.24B weekly inflows into spot ETFs
- Rising institutional adoption and regulated exposure
- Fiscal uncertainty tied to the U.S. shutdown
- Growing market bets on Fed rate cuts
Altcoins Steady as OnePay Eyes Crypto Push
Elsewhere in the crypto market, major altcoins traded sideways after sharp gains last week. Ethereum slipped 1% to $4,528, while XRP fell 2% to $2.97. Solana dipped 1%, Cardano lost 3.5%, and Polygon eased 1.3%. Among meme tokens, Dogecoin declined 2.5%, while $TRUMP dropped 1.2%.
In corporate news, Walmart-backed fintech OnePay plans to introduce crypto trading and custody services later this year, CNBC reported. The move, made in partnership with Zerohash, will allow users to trade Bitcoin and Ethereum directly through OnePay’s banking app — part of its push to become an all-in-one digital finance platform.
Despite the mild pullback, analysts say Bitcoin’s fundamentals remain strong. Continued ETF inflows, macro uncertainty, and institutional adoption could keep the world’s top cryptocurrency on track for further gains in the final quarter of 2025.
