US Shutdown & Risk-Off, Crypto Shines
The crypto market rallied on Monday, but remained in a consolidation mode after a weekend rally that pushed Bitcoin to a new record above $125,000. BTC held in the $123,000-$124,000 range, still near its historical peak, while Ether held steady above $4.5,000, and most altcoins traded mixed amid short-term profit-taking. The surge to weekend records was fueled by macroeconomic turmoil, including the US government shutdown, which sparked flows into digital hedge assets.
Fundamentally, the “debasement trade” narrative has resurfaced: investors are seeking a hedge against fiscal and political uncertainty, leading to increased interest in Bitcoin alongside gold. Inflows into US spot Bitcoin ETFs are also supporting the rally; last week saw a large net inflow, bolstering institutional demand. The combination of macroeconomic factors (shutdown), ETF liquidity, and risk-off sentiment explains the rapid breakout of key price levels since early October.
Going forward, market participants will monitor the duration of the shutdown, comments from Fed officials, and ETF flow dynamics to assess the sustainability of the trend. In the short term, volatility has the potential to remain high due to already "full" positions and profit-taking opportunities, as reflected in the slight corrections in some major currencies over the past 24 hours, despite the core trend remaining bullish. Risk management remains crucial near the record level.
Source: Newsmaker.id
