Cryptocurrency Market Gains from US Partial Government Shutdown, Bitcoin Reaches Two-Month High! Here are the specifics.
Bitcoin Surpasses $121,000, Ethereum Hits Three-Week High
Bitcoin (BTC) reached its highest level since August 14 on Thursday, surpassing $121,000. Ethereum (ETH) traded above $4,500, its highest level in three weeks.
On October 1st, the U.S. government formally shut down because Congress could not agree on a budget. Historical evidence, however, indicates that equities and other risky assets do not suffer from such shutdowns.
Additionally, analysts point out that Bitcoin has been unable to keep up with the current surge in the gold market. Even if gold hit a new high today, surpassing $3,900, JPMorgan strategists pointed out that Bitcoin is still cheap in comparison to gold and forecasted that it would hit $165,000 by the year’s end.
The “Uptober” narrative may also apply this year, according to experts, who point out that October has historically been the best month for Bitcoin. It appears that companies involved in cryptocurrency joined the rise as Coinbase’s shares increased 7%, Circle’s jumped 16%, and Bullish’s rose 11%.
In the meantime, $2.4 billion was invested in Bitcoin and Ethereum ETFs this week. The markets are receiving more support from the 98% chance that the Fed will drop interest rates again at its October meeting.
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