Bitcoin Hits $120,000 Amid Government Turmoil and Market Volatility
Bitcoin surged past $120,000 on October 3, following the partial shutdown of the U.S. federal government, as investors sought refuge in digital assets and gold amid mounting economic uncertainty. The world’s largest cryptocurrency rose nearly 4% within 24 hours, crossing key resistance levels after briefly hitting $116,400 the day prior.
The shutdown, triggered on October 1, came after the Senate failed to pass a stopgap funding bill, leaving approximately 150,000 government workers vulnerable to furloughs. The immediate fallout saw S&P 500 futures plunge, while gold prices rose 1.1% to $3,913.70 per ounce—signaling a broad move into safe-haven assets.
Bitcoin’s Role as a Hedge Gains Momentum
Analysts point to the absence of key economic indicators like jobs and inflation data as a driver of market instability. Deutsche Bank’s Jim Reid called the lack of data a state of “complete blindness” for both investors and policymakers.
In this environment, Bitcoin’s appeal as a non-sovereign store of value is gaining renewed attention. Charles Hoskinson, founder of Cardano, forecasted that Bitcoin could hit $250,000 by mid-2026, citing geopolitical fragmentation and rising distrust in traditional financial systems.
Crypto Sentiment Strengthens Across Markets
Other digital assets also rallied. Ethereum, XRP, Solana, and Dogecoin recorded gains between 4% and 7%, while the CoinDesk 20 Index climbed 5% to 4,217 points.
According to 21Shares strategist Matt Mena, delayed economic data could push the Federal Reserve to cut interest rates, creating conditions favorable to crypto. Meanwhile, Hoskinson reiterated that major tech firms and payment giants like Apple, Visa, and Stripe are accelerating their involvement in the sector—further legitimizing crypto as traditional systems show signs of strain.
As the shutdown lingers, Bitcoin’s role as a barometer of systemic fragility appears more relevant than ever.
