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

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

The transfer follows a gradual October grind that accelerated as macro and circulate 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 government shutdown backdrop. 

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

With official readings darkish, buyers are counting on weaker private-sector alerts, which will increase the percentages of extra Fed easing on Oct. 29. This sort of backdrop sometimes helps threat belongings and hard-asset hedges like BTC.

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

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

Macro is pulling in the identical path. The Federal Reserve minimize charges by 25 foundation factors on Sept. 17, and markets now ascribe high odds to a different minimize this month, easing monetary circumstances that sometimes favor threat belongings and crypto. 

Options positioning may be aiding momentum. A report 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.

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