Bitcoin Price Surges Past $118,000 as “Uptober” Rally Gains Momentum
Bitcoin, the world’s largest cryptocurrency, has seen a significant surge in its price, rising over $118,000 on Thursday. This increase has also boosted the wider digital asset market, with the overall capitalization of the crypto market increasing by 4.6% to $4.17 trillion. The price of Ether also rose by 6.1% to $4,385, while XRP saw a 5.6% increase to $2.97. This rally has been dubbed “Uptober” and has been a recurring phenomenon in the digital asset market, with October often bringing strength to cryptocurrencies.
The sharp rebound in Bitcoin’s price came after a week of severe liquidations and selling pressure that had reduced prices. Analysts have pointed to whale accumulation as a key driver of the reversal. The United States’ government shutdown, which began on Wednesday at midnight, has also contributed to the uncertainty in the market, with around 800,000 federal employees being furloughed and important economic data releases, including job reports, being delayed.
Uncertainty Fuels Investor Shift Towards Digital Assets
According to Lucas Kiely, CEO of Digital Asset Wealth Manager Future Digital, the uncertainty surrounding the government shutdown has given Bitcoin a new appeal as a safe-haven asset. “The markets hate uncertainty and expect volatility to increase,” Kiely said. He added that the administration could use the crisis to push for cuts in the federal workforce, although he expects the Senate to block such measures. The shutdown has reinforced the perception of digital assets as an alternative to traditional markets, with investors seeking safer options.
Limited Agency Response Narrows Liquidity Windows
Experts have warned that a prolonged government shutdown could contain long-term adoption of digital assets. Delays in regulatory decisions, particularly regarding Spot Altcoin Exchange-Traded Funds, would test the patience of investors. Hedy Wang, CEO and co-founder of Block Street, noted that a lack of personnel could slow down regulatory work, coordination between agencies, and even state comparisons. This would result in longer wait times for new issuers seeking approvals and banks hesitating to move from pilot projects to production.
Despite these concerns, traders have seized on the rally as proof of Bitcoin’s staying power. The narrative around “Uptober” has continued to add to the momentum, with the price increase reflecting a wider macroeconomic dynamic. A weaker dollar, which has been under pressure due to ongoing political turbulence and investor risk aversion, has also contributed to the buoyancy of cryptocurrencies. As global markets continue to experience volatility, digital assets are extending their role as an alternative investment option.
For more information on the Bitcoin price surge and the “Uptober” rally, visit https://cryptonews.com/news/bitcoin-price-tops-118k-uptober-rally-builds-dollar-weakness/
