Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
Share
Bitcoin surged above $118,000 on Thursday, lifting the broader digital asset market as October’s long-anticipated rally, often dubbed “Uptober,” took hold.
The world’s largest cryptocurrency gained 4% in the past 24 hours, climbing as high as $118,856.
The market-wide upswing pushed total crypto capitalization up 4.6% to $4.17 trillion. Ether jumped 6.1% to $4,385, while XRP rose 5.6% to $2.97.
This early momentum reinforced the belief among traders that October often brings strength to digital assets, with Uptober becoming a familiar rallying cry each year.
Shutdown Uncertainty Fuels Investor Shift Toward Digital Assets
The sharp rebound came after a week of heavy liquidations and selling pressure that had dragged prices lower. Analysts pointed to whale accumulation at the start of the week as a key driver of the reversal.
Earlier this week, the US entered its first government shutdown in six years after lawmakers failed to pass a stopgap funding bill. The shutdown, which began at midnight on Wednesday, put about 800,000 federal employees on furlough and is expected to delay key economic data releases, including jobs reports.
Rather than dampening sentiment, the uncertainty gave Bitcoin fresh appeal as a hedge against government dysfunction. “Markets hate uncertainty, so expect volatility to increase,” said Lucas Kiely, CEO of digital asset wealth manager Future Digital.
He added that unless Washington resolves the impasse swiftly, the administration could use the crisis to push for cuts in the federal workforce, although he expected the Senate to block such measures and for a deal to arrive quickly.
Limited Agency Response Narrows Liquidity Windows
Investor flows into Bitcoin demonstrate its resilience during periods of political gridlock. Traders often view decentralized assets as an alternative when traditional markets falter, and the shutdown strengthened that perception.
Still, experts warned that a protracted funding deadlock could weigh on longer-term adoption.
Delays in regulatory decisions, particularly around spot altcoin exchange-traded funds, would test investor patience. “If the SEC or CFTC cannot respond, you get higher legal risk assumptions, slower integration deals and narrower liquidity windows,” said Hedy Wang, CEO and co-founder of Block Street.
Wang explained that staffing shortages could slow supervisory work, inter-agency coordination and even comparability reviews with states. That would mean new issuers wait longer for approvals and banks hesitate to move from pilot projects to production. “Practically, that’s a near-term adoption drag even if the long-term framework remains solid,” she added.
Despite those concerns, traders seized on Thursday’s rally as proof of Bitcoin’s staying power. The narrative around Uptober, built over years of October gains, added further fuel to the momentum.
The rally also reflected broader macroeconomic dynamics. A weakening dollar, pressured by ongoing political turmoil and investor risk rotation, gave cryptocurrencies extra lift.
With global markets bracing for volatility, digital assets drew strength from their role as an alternative investment.
Credit: Source link
