Bitcoin surges near record amid US government shutdown
Bitcoin rallied to within 1% of its all-time high on October 3, 2025, as the US government shutdown raised economic uncertainty. Investors increasingly viewed the cryptocurrency as a safe-haven asset similar to gold. The shutdown disrupted key economic data releases, complicating market readings.
The US government entered a shutdown on October 1, 2025, after Congress failed to pass funding legislation, halting non-essential federal operations and furloughing thousands of workers. This event, the first major shutdown since 2019, immediately impacted financial markets by delaying critical economic indicators such as jobs reports and GDP data from agencies like the Bureau of Labor Statistics and the Commerce Department.
MarketWatch reported that investors should focus on unaffected data streams during such disruptions, including private-sector payroll figures from ADP and consumer sentiment surveys from the University of Michigan. 'Shutdowns create noise in official data, but private indicators can provide clearer signals for investment decisions,' said economist Ellen Zentner in the article. Historical precedents show mixed market reactions: the 2018-2019 shutdown lasted 35 days and led to a 19% S&P 500 drop, though recoveries followed resolutions.
Amid this uncertainty, Bitcoin emerged as a beneficiary. CNBC detailed how the cryptocurrency climbed 5% in a single day to $68,500, approaching its November 2021 peak of $69,000. 'Bitcoin is behaving like a safe-haven asset, decoupling from traditional risk assets as fiscal gridlock persists,' analyst Katie Stockton noted. Trading volume spiked 20%, with institutional inflows via ETFs reaching $200 million, per CoinShares data. The rally contrasted with a 1.2% dip in the Dow Jones Industrial Average, highlighting Bitcoin's growing role in diversified portfolios during political turmoil.
Experts cautioned that while Bitcoin's safe-haven narrative strengthens, volatility remains high. The shutdown's duration—potentially extending into mid-October—could further boost crypto adoption if economic opacity grows. No direct contradictions appeared between sources, though MarketWatch emphasized broader economic navigation while CNBC focused on crypto-specific gains.