Bitcoin Surpasses $120,000, Fueled by Seasonal Optimism and US Shutdown Concerns
Bitcoin's price surged to a seven-week high, hitting the $120,000 mark on Friday. This rise was driven by seasonal optimism known as "Uptober" and expectations of increased liquidity due to a potential US government shutdown. The world's largest cryptocurrency rose 1.2% and even briefly touched above $121,000 on Thursday, marking a very positive week following a sharp decline in late September.
Bitcoin has risen nearly 10% this week, recovering from a major sell-off triggered by the mass liquidation of leveraged positions, which wiped out over $20 billion in crypto funds. However, following the sell-off, large investors, or "whales," began returning, pushing the price sharply higher. Historically, October has been a strong month for Bitcoin, and this year's "Uptober" trend was reinforced by an influx of funds into US-based spot Bitcoin ETFs.
Furthermore, a potential US government shutdown is thought to trigger capital flows into alternative assets like crypto. A shutdown could delay the release of important economic data and limit Treasury activity, potentially diverting investor attention to non-traditional assets. However, if the shutdown lasts a long time, it could create new uncertainty about Federal Reserve policy and lead to greater market volatility. (ads)
Source: Newsmaker.id
