Bitcoin touches previous all-time high amid US government shutdown, macro uncertainties

Bitcoin (BTC) set a brand new file on Oct. 3, clearing its Aug. 14 peak of $123,731.21 and resetting the ceiling for this cycle. 

The transfer follows a gentle October grind that accelerated as macro and movement tailwinds aligned.

The spot market tone heading into October has been constructive. Bitcoin reclaimed the $120,000 threshold on Oct. 2 as threat urge for food improves amid a US authorities shutdown backdrop. 

The shutdown itself is proving to be additive for Bitcoin because it has interrupted key federal financial knowledge, most notably the month-to-month jobs report, muddying visibility for policymakers and markets.

With official readings darkish, traders are counting on weaker private-sector indicators, which will increase the chances of further Fed easing on Oct. 29. This sort of backdrop sometimes helps threat property and hard-asset hedges like BTC.

Moreover, demand for spot Bitcoin exchange-traded funds (ETFs) has reaccelerated, with funds recording $1.3 billion in internet flows between Oct. 1 and a pair of.

The ETF demand helped take up provide and bolstered dip-buying habits noticed in current weeks. 

Macro is pulling in the identical route. The Federal Reserve reduce charges by 25 foundation factors on Sept. 17, and markets now ascribe excessive odds to a different reduce this month, easing monetary situations that sometimes favor threat property and crypto. 

Choices positioning can also be aiding momentum. A file quarterly expiry final week reset threat and opened room for upside as open curiosity rebuilds into the fourth quarter, with heavy name curiosity clustered between $115,000 and $125,000 strikes.