"U.S. government shutdown positive for the crypto market"

As the U.S. government has entered a shutdown for the first time since 2018, Bitcoin and gold prices rose together, leading some experts to analyze that this could signal a bottoming of the crypto market.

On the 1st (local time), Cointelegraph reported that the federal government entered a shutdown after Congress failed to fund operations amid a dispute over the fiscal year 2026 budget.

Bitcoin (BTC) rose 2.9% on a 24-hour basis to reach 116,427 dollars, and gold also rose 0.7%, showing a potential increase in demand for safe-haven assets. Ryan Lee, Bitget's lead analyst, said, "Bitcoin's characteristic of being unaffected by government and political uncertainty will appeal to traditional financial investors," adding, "Corrections are inevitable, but major altcoins are likely to have already bottomed."

Analyst Lee said, "Bitcoin's recovery to 116,000 dollars is a positive signal for the market overall," and added, "Historically, October is a period in which bull markets tend to appear, so it could also affect year-end trends."

Past cases show mixed market reactions to government shutdowns. In 2013 stocks fell while Bitcoin rose, but in 2019 both stocks and Bitcoin were weak. Investment Research's Mercload Macro analyzed, "Shutdowns always disrupt government operations, but market reactions are inconsistent."

However, there have been many precedents in which the U.S. Federal Reserve (Fed) shifted to a more dovish stance on rate policy after shutdowns, and as a result the S&P500 was recorded to have risen an average of 13% per year. Trading Resources Koveishi Letter reported, "Historically, markets have tended to welcome shutdowns."

Meanwhile, decentralized prediction platform Polymarket reflects a 38% probability that this shutdown will end by October 15.