What made Bitcoin’s price jump to $126,192 in early October 2025, and why did it later correct to around $120,000?
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Correct Answer
Bitcoin’s price spiked to $126,192 because of strong buying pressure driven by ETF inflows and positive market sentiment, then corrected to around $120,000 as traders took profits and reacted to uncertainty from the U.S. government shutdown.
Why is this the correct answer?
This is correct because rapid inflows into Bitcoin ETFs and bullish sentiment can push prices higher in the short term, but after such a sharp rise, many investors choose to lock in gains. At the same time, news of a U.S. government shutdown increased uncertainty in broader markets, prompting some to sell and causing the price to pull back to a lower support level.