On October 2, Bitcoin briefly surpassed $121,000, marking its highest level since mid August, while Ethereum broke above $4,500 for the first time in three weeks. After a slight pullback, BTC traded near $119,892 and ETH at $4,471, maintaining much of their gains. The surge coincided with the partial U.S. government shutdown that began on October 1, a scenario historically linked with stock market strength, which has also bolstered crypto performance. Record gold prices above $3,900 have further fueled Bitcoin\u2019s narrative as a hedge against currency depreciation.<\/p>\n\n\n\n
The rally extended beyond digital assets, with Coinbase shares jumping over 7%, while recently listed firms Bullish and Circle gained 11% and 16%, respectively. Institutional inflows were another key driver, with nearly $2.4 billion pouring into Bitcoin and Ethereum ETFs over the week. Growing open interest and balanced spreads suggest the uptrend is being driven by institutional capital rather than speculative bursts.<\/p>\n\n\n\n
Despite political uncertainty, historical data shows no lasting damage to risk assets during U.S. government shutdowns. Analysts at JPMorgan now forecast Bitcoin could reach $165,000 by year-end, citing parity with gold adjusted for volatility. Market observers also point to strong seasonal trends, with October often called \u201cUptober\u201d averaging 14% gains since 2013.<\/p>\n\n\n\n
On the monetary policy front, CME FedWatch data signals a 98% chance the Federal Reserve will cut rates by 25 basis points at its October 29 meeting, continuing the easing cycle that began in September after a four-year pause. This dovish backdrop, combined with ETF inflows and gold driven valuation gaps, supports the case for crypto testing new all-time highs in the coming months.<\/p>\n","protected":false},"excerpt":{"rendered":"