Bitcoin Approaches Record High Amid U.S. Government Shutdown

NEW YORK, NY – Bitcoin reached nearly a record high on Friday, rising approximately 2% during the day to trade at $123,874. This increase comes as the U.S. government enters its third day of shutdown due to lawmakers failing to agree on federal funding.

The world’s oldest cryptocurrency is now just about 1% shy of its all-time high of over $124,000, which was achieved in mid-August. Investors are showing renewed interest in Bitcoin, considering it a potential hedge against growing political and economic instability.

“The shutdown matters this time around,” Standard Chartered‘s Geoff Kendrick commented. He noted that during the previous government shutdown from December 2018 to January 2019, Bitcoin’s position in the market was significantly different, resulting in little effect at that time.

Kendrick further explained, “This year, Bitcoin has been influenced by ‘U.S. government risks,’ as evidenced by its correlation with the U.S. treasury term premium.” He predicts that Bitcoin will likely reach new heights soon, projecting a price of $135,000 thereafter.

This surge in Bitcoin aligns with a broader trend of investors seeking refuge in decentralized assets. Spot gold also saw a rise of 0.5% to $3,876.55 per ounce, increasing by over 2% this week. Other assets such as stocks experienced gains on Friday, with the S&P 500 and Nasdaq Composite rising by 0.5% and 0.27%, respectively.

The ongoing uncertainty in government operations has spurred a collective shift in investment patterns, pushing traders toward cryptocurrencies and precious metals as safe havens. The ongoing tension is evident in several economic indicators and sectors as the market awaits further developments in government negotiations.