Bitcoin Tests the $125,000 Mark – XRP, DOGE & SOL See Profit-Taking, Bull Run Far from Done

Despite a slight pullback from record highs, the cryptocurrency market remains firmly bullish. Bitcoin (BTC), which surged to $125,000 on Sunday, continues to drive global digital asset growth.

While some altcoins — including XRP, DOGE, and Solana (SOL) — have seen profit-taking, analysts agree: this is not the end of the rally, but a natural pause before the next upward move.

Bitcoin Breaks $125,000 as Markets Bet on Looser Monetary Policy Over the weekend, Bitcoin broke above the $125,000 mark, reflecting optimism among traders as the U.S. government faces a potential shutdown. Investors are pricing in softer monetary and fiscal policies not only in the U.S. but also abroad — particularly in Japan, where the new prime minister has signaled a return to Abenomics, the aggressive easing strategy introduced by former leader Shinzo Abe. The total crypto market capitalization rose to $4.07 trillion, while the Fear & Greed Index climbed to 64 points — a bullish reading that remains far from euphoric levels, suggesting there’s room for further upside without excessive leverage.

Spot Demand Remains the Main Engine This latest rally appears to be driven primarily by spot demand and ETF inflows, rather than speculative leverage.

The fact that Bitcoin broke new ground on a weekend — typically a period of low liquidity — underscores that the move was fueled by genuine buying activity. Liquidations across BTC futures totaled a relatively modest $65 million, confirming that the rise was not fueled by overleveraged traders, but by sustained spot interest. Monday’s quick pullback likely reflects short-term profit-taking rather than the start of a correction.

Altcoins See Mild Correction, BNB Outperforms While Bitcoin slipped by about 1%, DOGE dropped to $0.2576, and Cardano (ADA) posted the steepest losses among major altcoins.

XRP, BNB, and TRX fell around 2%, while Ethereum (ETH) dipped just 0.5% to $4,564. The standout performer was BNB, which jumped more than 17% over the past week to $1,184, signaling that capital rotation across ecosystems is still active, even as Bitcoin remains the dominant driver.

Stablecoins Fuel the Fire Analytics firms report that the total stablecoin supply rose by a record $45 billion last quarter, with about two-thirds of new issuance on Ethereum.

This growing “dry powder” represents available liquidity that could flow into crypto markets — providing fresh fuel for the ongoing bull run. Meanwhile, the U.S. government shutdown may delay key economic data releases, prompting central banks to proceed cautiously — another factor that supports risk assets like cryptocurrencies.

$125,000: The Market’s Magnet According to Nick Ruck of LVRG, the recent move is a “hedging bid” linked to institutional inflows and inflation concerns, in line with accelerating ETF allocations after minor price dips. Alex Kuptsikevich of FxPro noted that long-term holders have been selling near these levels since July, suggesting a potential short-term increase in supply. “The next step could be an attempt to retest historical highs near $125,000,” Kuptsikevich said.

“But watch for long-term sellers — they’ve been taking profits near these levels for months.”

The Bull Market Is Still Alive Analysts agree that $125,000 is a key psychological barrier, one that could act as both a magnet and a test for market conviction.

If Bitcoin breaks above it without overheating funding rates, the rally could gain renewed strength. In short, the bull market is far from over — it’s simply catching its breath before the next leg higher, powered by strong spot demand, growing ETF flows, and record liquidity.

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