Bitcoin Hits New All-Time High Amid U.S. Government Shutdown Uncertainty

Bitcoin has once again set a new all-time high (ATH), surpassing $126,000, as traders continue to bet on the cryptocurrency amid the ongoing U.S. government shutdown. According to TradingView data, BTC climbed more than 2% in the past 24 hours, breaking above its previous record of $125,500. The rally marks a continuation of the bullish momentum that began at the start of October, with Bitcoin now up nearly 10% this month.

Analysts attribute this surge to the so-called “debasement trade,” as investors flock to Bitcoin as a hedge against economic instability and government inaction. The shutdown, which began on October 1, has halted key economic data releases, further fueling market uncertainty. As traditional markets face potential disruptions, Bitcoin’s appeal as a safe-haven asset has strengthened, leading to significant inflows into crypto-focused investment vehicles.

Data from Polymarket indicates that there’s a 72% chance the U.S. government shutdown could extend beyond October 15. Despite this, Bitcoin ETFs saw a massive turnaround last week, recording $3.24 billion in inflows—their second-largest weekly increase ever—signaling renewed institutional confidence.

Financial institutions are also bullish. Standard Chartered forecasts that Bitcoin could surge to $135,000 in the short term, with a year-end target of $200,000, driven by growing ETF demand and macroeconomic uncertainty. Meanwhile, prediction market odds show a 68% chance of BTC hitting $130,000 this month, a 38% chance of reaching $135,000, and a 9% chance of climbing to $150,000—a historic milestone.

Crypto analyst Titan of Crypto echoed this optimism, noting that Bitcoin’s price pattern suggests a continued uptrend toward the $135,000 mark before October ends. As global uncertainty persists, Bitcoin’s role as digital gold continues to solidify, reaffirming its position as the market’s ultimate risk hedge.