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Bitcoin Pulls Back Slightly After Record High, as ETF Inflows and U.S. Shutdown Fears Keep Momentum Intact

Bitcoin eased modestly on Monday, retreating from a fresh all-time high above $125,000, though strong institutional inflows into U.S. spot exchange-traded funds (ETFs) and uncertainty surrounding Washington’s prolonged government shutdown continued to underpin sentiment.

The world’s largest cryptocurrency was last down 1.6% at $123,716.7 as of 01:50 ET (05:50 GMT), after peaking at $125,617.4 on Sunday — its highest level on record. Despite the slight pullback, Bitcoin remains up more than 11% for the week and over 30% since the start of 2025, cementing its dominance in the digital asset market.

ETF Inflows Drive Renewed Institutional Appetite

Data from SoSoValue revealed $3.24 billion in net inflows into U.S. spot Bitcoin ETFs last week — the strongest weekly figure this year. The influx reflects renewed interest from institutional investors seeking exposure to digital assets through regulated instruments instead of direct holdings.

The move coincides with mounting concerns over the U.S. government shutdown, now in its second week, which has delayed key economic data and stoked uncertainty about fiscal policy. Traders speculate that the Federal Reserve could adopt a more cautious approach on interest rates once operations resume.

Analysts have described this rotation into Bitcoin and gold as a “debasement trade” — a defensive strategy against potential erosion of fiat value and growing fiscal stress.

Walmart-Backed OnePay to Enter Crypto Trading

In corporate developments, Walmart’s fintech venture OnePay, majority-owned by Walmart (NYSE:WMT) and Ribbit Capital, plans to introduce cryptocurrency trading and custody services within its digital banking app later this year, according to CNBC.

Partnering with crypto infrastructure provider Zerohash, OnePay aims to let users trade Bitcoin and Ethereum, marking a significant step toward building an all-inclusive digital finance “super app.”

Altcoins Remain Rangebound After Last Week’s Rally

Following Bitcoin’s lead, major altcoins showed muted moves on Monday after a week of strong gains.

  • Ethereum (ETH) slipped 1% to $4,528.65, paring some of last week’s 10% surge.
  • XRP fell 2% to $2.97, while Solana lost 1%, Cardano dropped 3.5%, and Polygon edged 1.3% lower.
  • Among meme coins, Dogecoin fell 2.5% and $TRUMP declined 1.2%.

Despite the minor correction, analysts maintain that the overall sentiment remains positive, with Bitcoin’s ETF momentum and macroeconomic uncertainty creating a supportive backdrop for the broader crypto market.

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