The US government shutdown hits financial markets, but Bitcoin surprises with a 12% weekly gain.
October marks a new chapter of financial and political uncertainty with the shutdown of the United States federal government. The lack of agreement between Democrats and Republicans to approve the 2026 budget has led to a government shutdown that is already having repercussions on global markets.
From the fall in equities and the US currency, to the bullish response of gold and, mainly, the euphoria in the Bitcoin price, investors are showing a mixed reaction to an unstable situation that could continue.
Buy Bitcoin and protect your capital in times of crisis"The US shutdown paralyzes key data and infects global markets."
The administrative closure —known as “shutdown"—was finalized after the deadline expired at midnight on September 30th, without either political party having reached a budget agreement. The immediate consequence is the temporary suspension of approximately 750.000 civil servants, with an estimated daily cost of $400 million, according to analysts at Renta4 and BloombergThis context not only affects public sector employment, but also implies a disruption in the publication of key macroeconomic data.
Among the affected data is the official nonfarm payrolls report for September, essential for the Federal Reserve's (Fed) monetary policy decisions. The Bureau of Labor Statistics (BLS) has suspended data collection and dissemination, creating an information gap that adds further uncertainty. In this scenario, risk aversion increases and equities suffer setbacks, increasing global investor caution.
On Wall Street, a deterioration in sentiment is being seen, mirrored outside the US, with the Tokyo Stock Exchange closing down 0,8% and European futures for key indices trading lower. This cooling has also affected the US currency, as the dollar loses appeal against currencies like the euro, whose value has appreciated to close to $1,18 per euro, from levels of 1,166 last Friday.
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While the stock market and the dollar are seeing their value decline, other assets considered safe havens in times of uncertainty are seeing upward movements. Gold, traditionally a defensive asset, has appreciated nearly 5% since the end of last week, approaching new all-time highs of $3.900 an ounce. This increase is explained by both increased risk aversion and the relative depreciation of the US dollar.
However, One of the singular protagonists in this situation corresponds to BitcoinAt the beginning of the week, the cryptocurrency was trading around $109.000; however, the surge associated with the US government shutdown has put its value above 122.000 dollars at the time of writing this article. This increase represents nearly 12% growth in just seven days.
Source: CoinGecko
This notable rise in Bitcoin's price is interpreted as a bet similar to that of gold, but with a key nuance: the valuation of a decentralized asset that is not dependent on government institutions.
The institutional degradation reflected in the shutdown has acted as a catalyst for investors to seek out cryptocurrencies as a viable alternative given the lack of confidence in traditional assets.
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The shutdown of the United States federal government, a consequence of the lack of political consensus for budget approval, has ushered in a critical period of global financial instability. With risks to public employment and the disruption of economic information, the climate of risk aversion is gaining ground, negatively impacting the stock market and the US currency.
At the same time, reserve assets are making a strong comeback, with Bitcoin positioning itself as a significant safe haven, benefiting from the perception of institutional vulnerability. The leading cryptocurrency is increasingly seen as an alternative to institutional fragility, thus strengthening in a context where trust in traditional political structures appears to be eroding. Its performance not only reflects the distrust in the conventional financial system, but also opens the door for it to consolidate as a modern safe haven in the face of political and monetary crises.
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