Bitcoin Extends ATH Rally as Market Prices In Three-Week U.S. Government Shutdown

Bitcoin has reached a new all-time high (ATH), extending its current rally, which began at the start of October. This comes as market participants price in an extended U.S. government shutdown, which could last up to three weeks.

Bitcoin Reaches New ATH As U.S. Government Shutdown Persists

TradingView data shows that the flagship crypto has reached a new all-time high, trading above its previous ATH of $125,500, which it set yesterday. BTC is currently trading at around $126,000, up over 2% in the last 24 hours.

Source: TradingView; Bitcoin Daily Chart

The Bitcoin rally to a new ATH comes as market participants price in an extended U.S. government shutdown. Polymarket data shows that there is currently a 72% chance that the shutdown will end by October 15 or later.

Source: Polymarket

The U.S. government shutdown began on October 1, which coincided with the BTC price‘s surge from around $114,000. The flagship crypto is up almost 10% since the start of this month.

Investors are believed to be piling into Bitcoin as a safe-haven asset in what is now known as the ‘debasement trade’ to hedge against the current economic uncertainty. Notably, the shutdown has withheld key economic data releases, which has also had investors on edge.

As CoinGape reported, thanks to this debasement trade, the Bitcoin ETFs recorded their second-largest weekly inflows last week, taking in $3.24 billion. This marked a turnaround, as these funds had experienced mixed flows for some time.

How High Can The BTC Rally Extend?

Standard Chartered has predicted that this current BTC rally could lead to a surge to $135,000 soon, even as the shutdown persists. The banking giant also expects the flagship crypto to reach $200,000 by year-end, thanks to the ETF boom.

Source: Polymarket

Polymarket data shows that there is a 68% chance that Bitcoin will hit $130,000 this month and a 38% chance that it will reach $135,000, as Standard Chartered predicted. Meanwhile, there is a 9% chance that BTC will hit $150,000, which will mark a historic milestone.

Crypto analyst Titan of Crypto predicted that BTC could rally above $135,000 this month. He noted that the flagship crypto is grinding up a channel, with the trend pointing to a rally above the $135,000 target before the end of this month.

Source: https://coingape.com/bitcoin-extends-ath-rally-as-market-prices-in-three-week-u-s-government-shutdown/