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 circulate tailwinds aligned.

The spot market tone heading into October has been constructive. Bitcoin reclaimed the $120,000 threshold on Oct. 2 as danger 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 alerts, which will increase the chances of extra Fed easing on Oct. 29. This type of backdrop usually helps danger 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 couple of.

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

Macro is pulling in the identical course. The Federal Reserve minimize charges by 25 foundation factors on Sept. 17, and markets now ascribe excessive odds to a different minimize this month, easing monetary circumstances that usually favor danger property and crypto. 

Choices positioning can also be aiding momentum. A file quarterly expiry final week reset danger 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.