Bitcoin rallies to within 1% of all-time high, gaining safe-haven status during shutdown
Bitcoin surged on Friday, coming close to its all-time high as the U.S. government faced its third day of shutdown. The cryptocurrency is currently trading at $123,874, just 1% below its record price of over $124,000 reached in August.
Investors are turning to Bitcoin as a safe haven asset amidst the political turmoil in the U.S. after lawmakers failed to reach a deal on federal funding. The shutdown has fueled a 12% increase in Bitcoin’s price this week alone.
Geoff Kendrick from Standard Chartered noted that the current shutdown is having a significant impact on Bitcoin’s price compared to previous government closures. He highlighted the correlation between Bitcoin and U.S. treasury term premium, indicating that the cryptocurrency is reacting to the political risks.
Standard Chartered predicts that Bitcoin will reach a new high soon, with a target of $135,000 in the near future.
In addition to Bitcoin, traders are also turning to other assets like gold to hedge against economic and political uncertainties. Gold prices rose by 0.5% to $3,876.55 per ounce on Friday, with a weekly gain of over 2%.
Despite the geopolitical tensions, traders also showed interest in stocks, with the S&P 500 and Nasdaq Composite both posting gains of 0.5% and 0.27% respectively on Friday.
Overall, the market is reacting to the ongoing government shutdown and investors are diversifying their portfolios with alternative assets like Bitcoin and gold to mitigate risks in the current economic climate.
