Bitcoin climbed above $122,000 in the past 24 hours, supported by hints from the US Federal Reserve suggesting that further interest rate cuts may be on the way.
Strong, sustained demand for spot Bitcoin exchange-traded funds (Spot Bitcoin ETFs) also helped lift the price of the world’s largest cryptocurrency by market capitalization.
Bitcoin (BTC-USD) rose in early Thursday trading, briefly surpassing $123,000 before paring gains to stabilize above $122,000, up around 1% for the day.
Despite these gains, and after reaching an all-time high above $126,000 earlier in the week, British investment platform Hargreaves Lansdown took a firm stance against the crypto sector.
In a statement to the Financial Times on Thursday, the company said: “We do not believe cryptocurrencies possess the characteristics that make them suitable for inclusion in investment portfolios, whether for growth or income purposes, and they should not be relied upon to help clients achieve their financial goals.”
The company added that “Bitcoin is not an investment asset class.”
This statement coincided with the UK Financial Conduct Authority’s (FCA) decision to lift a four-year ban on retail investors’ access to regulated crypto investment products.
However, Hargreaves Lansdown clarified it would conduct further risk assessments before deciding whether to offer access to exchange-traded notes (ETNs) linked to cryptocurrencies on its platform.
Fed Minutes Indicate Policy Shift
Hargreaves Lansdown’s cautious view of the crypto market comes amid a strong rally in digital assets, fueled by dovish signals from the US Federal Reserve and large inflows into Bitcoin and Ether spot funds.
On Wednesday, minutes from the Fed’s September meeting showed that about half of policymakers expect two additional rate cuts before year-end — signaling a more accommodative stance by the central bank.
Markets responded with broad gains across equities, cryptocurrencies, and commodities.
That same day, spot Bitcoin ETFs recorded net inflows of $441 million — the eighth consecutive day of positive flows — while spot Ether funds added another $69 million, underscoring renewed investor appetite for digital assets.
Meanwhile, gold surged above $4,050 per ounce for the first time, rising 11.7% in October and about 55% year-to-date, as growing fears over fiat currency weakness pushed investors toward tangible assets.
Timothy Messer, head of research at BRN, said: “The markets absorbed the week’s volatility and emerged stronger. The Fed minutes were the catalyst bulls needed — confirmation that monetary policy is tilting toward faster easing, not tightening. As a result, both gold and Bitcoin jumped, reaffirming the broader trend toward hard assets leading this cycle.”
He added that eight consecutive days of ETF inflows signal strong and sustained structural demand, while major corporations are expanding their participation by adding Bitcoin to their treasuries as a strategic reserve asset.
Messer also noted that easing geopolitical tensions — aided by the ‘Middle East Peace Framework’ brokered by President Donald Trump — reduced short-term volatility and gave traders a clearer outlook for the final quarter of the year.
Institutional Players Drive the Current Rally
Ryan Lee, chief analyst at Bitget, told Yahoo Finance UK that Bitcoin’s recent surge to record highs above $126,000 has been driven by increasing ETF inflows and growing institutional involvement.
Bitcoin hit a new all-time high of $126,198 on Monday, October 6, as investor enthusiasm for spot Bitcoin ETFs intensified.
“Market data shows that since the start of October, we’ve seen massive inflows into Bitcoin ETFs, peaking at over $1.2 billion on October 6 — a liquidity surge that translated directly into the record high of $126,198 that same day,” Lee explained.
He added: “With the ongoing US government shutdown, investors across segments have turned to Bitcoin and other assets as hedges against macro uncertainty. At the same time, exchanges are showing declining Bitcoin supply, reflecting a liquidity squeeze that could pave the way for further price appreciation.”
Lee noted that the current bull cycle differs from previous ones: “In addition to continuous accumulation by spot Bitcoin ETFs, corporations are now directly adding Bitcoin to their balance sheets as a primary store of value and inflation hedge.”
