Bitcoin Surges as U.S. Government Shutdown Boosts safe-Haven Assets
Bitcoin has seen a significant price recovery, reaching $118,473. this surge comes as trading activity increases and investors flock to digital assets amid the U.S. government shutdown.The shutdown, the first since 2018, has sparked a shift towards safe-haven investments like Bitcoin and gold.
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, with open interest rising 6% to $86.6 billion. This suggests traders are taking renewed positions rather than engaging in short-term speculation.
The crypto market cap has also risen 3.5% to $4.16 trillion, supporting the “Uptober” optimism. The shutdown has unsettled conventional markets, with S&P 500 futures dipping and the U.S.dollar weakening. Though, Bitcoin and gold have thrived, with gold hitting a record $3,850 per ounce.
Regulatory developments have further boosted Bitcoin. U.S.spot Bitcoin ETFs attracted nearly $1 billion in late September, and BlackRock’s fund surpassed $80 billion in assets.The Treasury’s clarification on tax rules for corporate bitcoin holdings is expected to encourage more businesses to adopt it.
technically, Bitcoin is above key moving averages, with the relative strength index at 63, indicating a neutral to bullish trend. the Awesome Oscillator and MACD levels show buy signals. If ETF inflows and macro risks continue, a breakout above $119,900 could pave the way for new highs this month. Conversely, failure to close above resistance may see BTC consolidate around $114,000, with deeper support at $108,900 if selling pressure returns.
