Bitcoin Nears All-Time High as U.S. Shutdown Fuels Crypto Surge

Bitcoin Nears Record High as US Government Shutdown Looms

  • Bitcoin surged more than 8% since the U.S. government shutdown began on Wednesday.
  • The cryptocurrency approached its all-time high, trading within 1% of the previous record on Friday.
  • The total cryptocurrency market rose over 3%, topping $4.3 trillion.
  • Market sentiment turned “extremely bullish” among retail traders as Bitcoin rallied.
  • Analysts at Standard Chartered forecasted a potential move to $135,000 for Bitcoin.

Bitcoin saw strong gains this week as the U.S. government shutdown continued. On Friday afternoon, Bitcoin’s price rose by 1.75% in the past 24 hours, reaching around $122,300. This level is within 1% of its all-time high of $124,290 set in August. Since the shutdown began on Wednesday, Bitcoin has gained over 8%.

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The broader cryptocurrency market also advanced, climbing more than 3% to exceed $4.3 trillion. According to Coinbase data, Bitcoin reached a high of $123,996 during the day.

Retail sentiment about Bitcoin surged to “extremely bullish,” with a high level of online discussion. According to Standard Chartered’s Global Head of Digital Assets Research, Geoff Kendrick, the current government shutdown is having a noticeable impact on Bitcoin’s price this year. Kendrick said, “The shutdown matters this time around… this year Bitcoin has traded with ‘U.S. government risks’ as best shown by its relationship to U.S. treasury term premium.”

Kendrick noted that Bitcoin has diverged from its usual pattern of dropping in price about 18 months after a halving event, which is when the reward for mining new blocks is reduced. The most recent halving occurred in April 2024, but instead of weakening, Bitcoin’s price has stayed strong.

October has historically been a strong month for Bitcoin, seeing gains in nine of the past ten years. A move up to $135,000 would be about 9% higher than Friday’s price, according to Kendrick.

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