Bitcoin Surges as U.S. Government Shutdown boosts Safe-Haven Assets
Bitcoin has seen a important price recovery, reaching $118,473. This surge comes as trading activity increases and investors seek refuge in digital assets during the U.S. government shutdown.
bitcoin’s price climbed 3.4% in the past 24 hours, bringing its weekly gain to 6% and its monthly rise to 7.4%.It’s now just 4.5% below its all-time high of $124,128.
Coinglass data reveals a 50.6% increase in derivatives volume to $122.8 billion. Open interest also rose by 6% to $86.6 billion. This suggests traders are taking renewed positions rather than engaging in short-term speculation.
The crypto market cap has risen 3.5% to $4.16 trillion, supporting the seasonal optimism known as “Uptober.”
The U.S. government shutdown, which began on Oct. 1, has driven investors toward safe-haven assets like Bitcoin and gold. The shutdown, linked to spending cuts and healthcare subsidies, has unsettled conventional markets.
Gold hit a record $3,850 per ounce, while Bitcoin surpassed $119,000 for the first time in two months. Bitcoin’s fixed supply of 21 million coins makes it an attractive option during fiscal uncertainty.
Regulatory developments have also supported Bitcoin. U.S. spot Bitcoin ETFs attracted nearly $1 billion in late September. BlackRock’s fund now holds over $80 billion in assets.
The Treasury’s clarification that unrealized gains on corporate balance sheets won’t be taxed is a historic move. It may encourage more businesses to hold Bitcoin long-term.
Technically, Bitcoin is above key moving averages, with the relative strength index at 63. The Awesome Oscillator and MACD levels show buy signals, indicating growing trend momentum.
Bitcoin is approaching the upper Bollinger Band around $119,878. If ETF inflows continue and macro risks persist, a breakout above $119,900 could lead to new highs this month. Otherwise, BTC may consolidate around $114,000, with deeper support at $108,900.
