Bitcoin Hits All-Time High Amid US Government Shutdown
Bitcoin surged to a new record price of $125,689 on Sunday in asia, surpassing its previous peak of $124,514 set on August 14, according to Bloomberg.The rally comes as the US government enters its third day of a partial shutdown, fueling speculation about a flight to safe-haven assets.
The cryptocurrency’s ascent reflects broader trends of investment in alternative assets, including stocks, gold, and even collectibles, driven by concerns about dollar depreciation. This latest surge builds on a year of strong performance for Bitcoin, which has increased in value by over 30% since the start of 2023, traditionally experiencing gains in the month of October – appreciating in nine of the last ten Octobers.
Joshua Lim, a co-manager at Falconx cryptocurrency, noted, “Against the backdrop of many assets…it is no surprise that Bitcoin takes advantage of the attitudes to depreciate the dollar.”
The current price increase is also attributed to a more favorable regulatory environment in Washington, spurred by policies enacted during President Donald Trump‘s management. Increased demand from public companies adopting Bitcoin as a corporate asset, a strategy initially seen with smaller cryptocurrencies like ether, has further propelled the digital asset market.
Jeff Kendrick, global head of Digital Assets at Standard Chartered PLC, believes the shutdown is a notable factor this time. “Stopping the administration’s work matters this time,” he stated, anticipating further price increases during the shutdown period. He highlighted that Bitcoin was less correlated with traditional risk assets during the 2018-2019 government shutdown, placing it in a different position than it currently occupies.
