Bitcoin may update all-time high amid US government crisis

Bitcoin BTC $122,465.00 Mezo Wrapped BTC 1.59% Market capitalization $43.11 million VOL. 24 hours $2.48 billion is once again approaching record highs amid political and economic instability in the United States. This morning, the price of the cryptocurrency rose to $ 109,250, the highest level in six weeks. As of the time of publication, it was around $ 108,720. The price is less than 4% away from its historic high of $ 124,128, recorded on August 14.

Analysts note that October is traditionally a strong month for bitcoin, and the current trend confirms this phenomenon, which is called «Uptober» in the community. The growth of the exchange rate coincided with the first government shutdown since 2018 and the 11th in the modern history of the United States, which arose due to the inability of Republicans and Democrats to agree on the level of federal spending.

Experts estimate that the US economy will lose approximately $ 15 billion every week due to the suspension of government agencies. On the Polymarket forecasting platform, users estimate the probability of a quick end to the shutdown at only 8%. In these circumstances, investors are increasingly turning to bitcoin as a tool for preserving value independent of governments.

At the same time, the paralysis of US agencies has postponed the market’s expected decisions to launch cryptocurrency exchange-traded funds (ETFs). Analyst Nate Geraci said that «the Cryptober ETF may have to wait a bit» because the US Securities and Exchange Commission (SEC) has sent about 90% of its employees on forced leave.

Thus, the US «shutdown» has simultaneously become a factor in the growth of demand for bitcoin and a barrier to the development of the market’s institutional infrastructure. If the situation drags on, the cryptocurrency may try to update its historical high, but investors remain uncertain about the regulatory outlook.