Bitcoin smashed through $120,000 on October 3rd right after the US government shut down when the Senate couldn’t pass a stopgap funding bill. The vote fell short at 55-45, leaving about 150,000 federal workers facing furloughs and triggering immediate market chaos.
Investors rushed into Bitcoin and gold as safe havens, with gold climbing 1.1% to $3,899 per ounce while Bitcoin jumped over 2% overnight before breaking the $120,000 barrier. Traditional stock futures took a beating as uncertainty spread through markets.
Charles Hoskinson from Cardano had predicted just days earlier that Bitcoin could hit $250,000 by mid-2026, citing geopolitical disruption as the main catalyst. His timing looks pretty good right now considering what’s happening.
The shutdown creates a weird situation where nobody gets important economic data like employment and inflation reports. Deutsche Bank called it “complete blindness” for policymakers. Some analysts think this might push the Fed to cut rates in October and December since they can’t see what’s actually happening in the economy.
What makes this rally interesting is that Bitcoin gained nearly 4% in 24 hours while other major cryptos like Ethereum, XRP, and Solana jumped between 4% and 7%. The whole crypto market seems to be treating this government dysfunction as a reason to buy digital assets instead of traditional ones.
Conclusion
Bitcoin’s surge past $120,000 highlights how government dysfunction is fueling investor flight toward digital assets, with crypto increasingly seen as a safe haven when traditional markets stumble under political and economic uncertainty.
Also Read: Bitcoin Uptober
