- Bitcoin rose nearly 4% in the past 24 hours, briefly hitting $119,455.
- The US government shutdown delays key economic reports, potentially prompting further Fed rate cuts.
- Major altcoins including Ether, XRP, and Solana gained between 4% and 8%, lifting the broader market.
Bitcoin has climbed to its highest level since mid-August, surpassing $119,000 amid the ongoing US government shutdown that began on October 1.
The rally is driven by expectations of a positive liquidity impulse, as the shutdown delays critical economic data releases such as the nonfarm payrolls report, according to CoinDesk.
Analysts suggest this could lead the Federal Reserve to implement a 25 basis point rate cut in October, with potential for additional easing by December. Lower real yields and a softer dollar are seen as supportive for risk assets like cryptocurrencies.
Matt Mena, crypto research strategist at 21Shares, noted: “If ADP is a leading signal and the BLS print is delayed, the Fed is likely to deliver a 25 bp cut in October… Net effect: a positive liquidity impulse that historically supports BTC.”
The broader market followed suit, with the CoinDesk 20 Index jumping 5% to 4,217 points. Ether advanced 6.2% to $4,382.92, while Solana climbed 8% and XRP rose 4.6%, per data from Investing.com.
Seasonal ‘Uptober’ optimism and a recent short squeeze have also contributed, absorbing oversold conditions from late September, as highlighted in reports from BTC Markets.
Institutional interest remains strong, with Bitcoin ETFs recording net inflows of $1.2 billion over the past seven days, bringing cumulative flows to $58 billion.
Derivatives markets show BTC options appearing cheap, with Greg Magadini of Amberdata stating: “The U.S. government shutdown could finally be the catalyst to make BTC move a lot.”
On X, users like @YieldXYoda noted Bitcoin pushing toward $118,000, viewing the shutdown as a ‘non-event’ that presents buy opportunities.
While the surge highlights Bitcoin’s appeal during macro uncertainty, risks remain if economic data disappoints upon release. Altcoins such as DAI and UNI exhibited mixed responses amid the volatility.
Bitcoin last traded at $118,481.5, up 3.7% on the day.
Disclaimer: This article is for informational purposes only and does not constitute advice of any kind. Readers should conduct their own research before making any decisions.
© Cryptopress. For informational purposes only, not offered as advice of any kind.
