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- Bitcoin surged above $118K, fueling a $4.17T crypto market rally.
- U.S. government shutdown boosted demand for decentralized assets.
- ETF delays remain a risk, but Uptober momentum strengthened confidence.
Bitcoin surged above $118,000 on Thursday, igniting October’s traditional “Uptober” rally and lifting the broader crypto market despite political turmoil in Washington. The move marked a 4% gain in 24 hours, with the world’s largest cryptocurrency reaching $118,856 at its peak.
The momentum pushed total crypto market capitalization up 4.6% to $4.17 trillion, with Ether climbing 6.1% to $4,385 and XRP jumping 5.6% to $2.97.
Shutdown Uncertainty Fuels Investor Shift
The rally came on the heels of the first U.S. government shutdown in six years, triggered by Congress failing to pass a stopgap funding bill. Roughly 800,000 federal employees were furloughed, and key economic data releases are now delayed.
Rather than spooking markets, the shutdown gave Bitcoin fresh appeal as a hedge against government dysfunction. “Markets hate uncertainty, so expect volatility to increase,” said Lucas Kiely, CEO of Future Digital. He suggested political brinkmanship could prompt investors to favor decentralized assets.
Whale Accumulation and ETF Concerns
Analysts also pointed to heavy whale accumulation earlier in the week as a driver of the rebound after days of liquidation-driven declines.
Still, the shutdown raises concerns about delays in regulatory decisions, particularly around spot altcoin ETFs. Hedy Wang, CEO of Block Street, warned that staffing shortages could slow approvals, inter-agency reviews, and bank adoption timelines. “Practically, that’s a near-term drag even if the long-term framework remains solid,” she noted.
Also Read: Ethereum Price Targets $5K–$6.9K as Bitcoin Nears $119K in Q4 Rally
Macro Tailwinds Strengthen Uptober Narrative
Beyond Washington’s gridlock, global macroeconomic factors played a role. A weaker U.S. dollar and rising investor appetite for alternatives gave cryptocurrencies additional lift. Traders embraced Uptober’s historical trend, reinforcing Bitcoin’s reputation as a resilient asset during periods of uncertainty.
Bitcoin’s rally above $118K underscores the cryptocurrency’s dual role as both a speculative asset and a hedge against political and macroeconomic risk. While delays in ETF approvals could temper enthusiasm, Uptober’s strong start suggests digital assets remain firmly in the spotlight.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
