- Bitcoin Price retreated to $123,714 after reaching an all-time high.
- Ethereum dropped to $4,678 and XRP steadied at $2.97.
- U.S. government shutdown and delayed economic data fueled a shift towards cryptocurrencies and precious metals.
- Bitcoin exchange-traded funds (ETFs) recorded six straight days of inflows, totaling $1.19 billion on Monday.
- Over half of retail traders polled expect Bitcoin to reach $150,000 by year-end, but Gold prices remain ahead so far in 2025.
Bitcoin prices slipped early Tuesday, following a record high the previous day. The price decline coincides with ongoing uncertainty in the U.S. government, which is currently shut down due to a dispute over healthcare benefits. The shutdown has resulted in a lack of new economic data, including employment figures, driving investors toward alternative assets.
At the time of reporting, Bitcoin was valued at $123,714 per coin according to CoinMarketCap. Ethereum eased to $4,678, while XRP remained steady at $2.97.
According to analyst Rachael Lucas, “No jobs data, no clarity on Federal Reserve moves. Investors are fleeing to Bitcoin, gold, and silver. The debasement trade is back, and BTC is loving it.” The term “debasement trade” refers to a strategy in which investors move out of traditional currencies and government bonds, seeking safety in alternatives such as cryptocurrencies and precious metals.
Legislative disagreements among Republican and Democratic officials have stalled the release of key economic reports and complicated interest rate decisions by the Federal Reserve. The CME Group’s FedWatch tool shows that a majority of traders expect a 0.25% rate cut at the next Fed meeting.
Data from SoSoValue indicates that Bitcoin ETFs saw $1.19 billion worth of inflows on Monday—the sixth consecutive day of positive flows. Retail sentiment about Bitcoin remains highly optimistic, with ongoing polls showing more than 50% of retail traders expecting prices to surpass $150,000 by the end of 2025.
Despite strong gains for digital assets, gold has outperformed Bitcoin for the year, sustained by central bank purchases and ETF inflows. Commenting on the rally, gold advocate Peter Schiff noted that “Until Bitcoin can make a new high price in gold, it’s just a bear market rally.” Schiff suggested Bitcoin would need to rise to approximately $148,000 to match its previous top when compared to gold prices.
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