Bitcoin rallied sharply on Friday, climbing to within 1% of its all-time high as investors flocked to the world’s largest cryptocurrency amid growing uncertainty from the ongoing U.S. government shutdown.
The digital asset rose roughly 2% to trade around $123,874, just shy of its record high of over $124,000 reached in mid-August. The move extends a strong week for bitcoin, which has surged about 12% since U.S. lawmakers failed to agree on a new federal funding plan, forcing the government into its third consecutive day of shutdown.
Bitcoin gains safe-haven appeal
“The shutdown matters this time around,” said Geoff Kendrick, head of digital asset research at Standard Chartered. “During the previous Trump shutdown (December 2018 to January 2019), bitcoin was in a different place than now, so it did little.”
Kendrick noted that this time, bitcoin has been trading more closely with indicators tied to U.S. government risks, particularly Treasury term premiums. Standard Chartered expects bitcoin to break above its previous high soon and potentially climb to $135,000 in the near term.
Traders seek alternatives amid rising uncertainty
The rally reflects bitcoin’s evolving role as a perceived hedge against political and macroeconomic instability. Investors have been rotating into decentralized assets as concerns mount over U.S. fiscal gridlock and broader global tensions.
Gold—another traditional safe-haven asset—also gained, rising 0.5% to $3,876.55 per ounce on Friday and up more than 2% for the week.
Broader markets show resilience
Despite the political uncertainty, U.S. equity markets also advanced. The S&P 500 and Nasdaq Composite added 0.5% and 0.27%, respectively, as traders balanced concerns over government dysfunction with optimism around corporate earnings and monetary policy easing expectations.
Bitcoin’s latest surge underscores how far the cryptocurrency has evolved from its speculative roots, increasingly serving as a macro hedge in times of policy-driven turbulence.
