Bitcoin Climbs Within 1% Of Record High Amid US Government Shutdown Uncertainty

Bitcoin (BTC) came within 1% of a fresh all-time high in afternoon trade Friday, lifted by a broader cryptocurrency rally as the U.S. government shutdown entered its third day.

Bitcoin’s price has gained 1.75% over the past 24 hours to about $122,300, after touching an intraday peak of $123,996, just 1% shy of its August 14 record of $124,290, according to Coinbase data.

The overall cryptocurrency market rose over 3% to over $4.3 trillion. Retail sentiment on Stocktwits around the apex cryptocurrency surged to ‘extremely bullish’ from ‘bullish’ territory over the past day amid ‘high’ levels of chatter. Since the U.S. government entered a shutdown on Wednesday, Bitcoin has gained more than 8%. 

According to Standard Chartered’s Global Head of Digital Assets Research, Geoff Kendrick, Bitcoin was slated to hit a new record and should rally as high as $135,000. “The shutdown matters this time around,” he wrote. “During the previous Trump shutdown, Bitcoin was in a different place than now, so it did little. However, this year Bitcoin has traded with ‘U.S. government risks’ as best shown by its relationship to U.S. treasury term premium.”

Kendrick stated that Bitcoin has deviated from a historical pattern in which prices typically fell about 18 months after a halving. If that had been the case, the April 2024 halving would have been followed by price weakness now, he noted. 

Bitcoin has a strong track record in October, a month traders have dubbed ‘Uptober,’ with gains in nine of the past 10 years. A push toward $135,000 would represent roughly 9% upside from current levels.

Read also: Coinbase One Comes To Samsung Wallet In US, Expansion To Follow In Next Few Months

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