Bitcoin Blasts Higher as US Shutdown, Dollar Weakness, and Treasury Tax Break Create ‘Perfect’ Storm
Bitcoin surged over 5% to over $119,000 between October 1-2, 2025, throughout Asian buying and selling hours, as a uncommon alignment of macro, regulatory, and on-chain elements propelled the market greater. The US authorities shutdown rattled conventional markets however strengthened Bitcoin’s safe-haven attraction.
Interestingly, new information recommend that the bull cycle nonetheless has room.
Behind BTC’s Explosive October Rally
According to the newest replace shared by CryptoQuant, weak financial information added gas to BTC’s restoration. For occasion, the ADP report confirmed 32,000 job losses, which is the steepest in over two years, whereas delayed nonfarm payrolls led merchants to cost in an nearly sure October Fed price minimize.
A weaker greenback additional supported flows into Bitcoin. Regulatory momentum additionally supported the rally. The SEC moved to ease itemizing necessities for crypto ETFs, and evaluations of Solana, XRP, and different purposes are scheduled for this month. Spot Bitcoin ETFs within the US noticed almost $1 billion of inflows in late September, whereas BlackRock’s fund crossed $80 billion AUM, and stories indicated Vanguard might revisit its crypto stance.
Adding to the optimism, the US Treasury clarified that unrealized Bitcoin positive aspects held by firms won’t be taxed, which is being deemed a landmark coverage shift and is broadly anticipated to drive extra companies to undertake BTC as a reserve asset.
On-chain information echoed the bullish backdrop. CryptoQuant famous that change reserves fell sharply from 2.61 million BTC in early September to 2.49 million by October 1, which indicated a powerful outflow into chilly storage and diminished near-term promote stress.
As Bitcoin entered its so-called “Uptober” part and gold notched new all-time highs, a wave of bullish sentiment seems to have swept over crypto markets.
“Bitcoin’s surge was not attributable to a single issue however the convergence of macro uncertainty, regulatory shifts, institutional adoption, favorable tax coverage, and on-chain provide contraction. Together, these forces created the right setup for Bitcoin’s decisive transfer greater, strengthening confidence that the bull cycle nonetheless has room to run.”
Crucial Levels For Bitcoin
Analyst CasiTrades has flagged $120K-$122K as the crucial resistance zone that can outline Bitcoin’s subsequent transfer. As BTC makes an attempt to push towards a brand new native high, the analyst stated that it’s “a completely crucial time to concentrate.” A breakout above this stage might open the trail to contemporary document territory, whereas a rejection dangers triggering a pointy pullback towards $100K or decrease.
She warned that the present setup carries each high danger and high reward, and uncertainty is operating equally sturdy.
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