Bitcoin surged past $120,000 as U.S. government shutdown delays economic data release, sparking rate-cut speculations, influencing risk assets and creating volatility on October 2023, particularly in the Americas.
The shutdown’s repercussions emphasize Bitcoin’s status as a macro hedge, highlighting significant market movements and renewed interest in crypto amid macroeconomic uncertainties.
Bitcoin Exceeds $120,000 Amid U.S. Economic Uncertainty
The U.S. government shutdown has halted economic data releases, impacting Federal Reserve decisions. Bitcoin surged past $120,000 as market participants anticipated a bullish October amid delayed data and rate-cut speculation.
Involved parties include the U.S. Federal Reserve and Treasury Secretary Scott Bessent, who highlighted the shutdown’s economic impact. No official statements have been made by Federal Reserve Chair Jerome Powell or major crypto KOLs regarding the surge. As Scott Bessent stated, “We could see a hit to the GDP, a hit to growth and a hit to working America.”
Cryptocurrency Markets React Positively to Rate-Cut Speculation
Bitcoin’s rise is linked to shutdown-driven rate-cut speculation, pushing risk assets higher. Ethereum, Solana, and XRP also saw significant gains, indicating broad market optimism.
Potential financial outcomes include increased volatility as BTC futures and options open interest climb.
While institutional actions are stalled, major cryptocurrencies benefit from the decentralized asset narrative amid regulatory pauses.
Shutdown Trends Align with Past Volatility Patterns
Past U.S. shutdowns have led to risk-asset volatility, often boosting Bitcoin as a macro hedge. Historical shutdowns generally resulted in mild economic impacts but increased uncertainty in markets.
Kanalcoin experts suggest the current trend may mirror past spikes during shutdowns, with BTC and major crypto assets experiencing upward momentum due to paused regulatory processes and anticipated macroeconomic shifts.
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