{"id":60439,"date":"2025-10-02T05:04:35","date_gmt":"2025-10-02T05:04:35","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-surges-as-us-government-shutdown-ignites-the-market\/"},"modified":"2025-10-02T05:04:35","modified_gmt":"2025-10-02T05:04:35","slug":"bitcoin-surges-as-us-government-shutdown-ignites-the-market","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bitcoin-surges-as-us-government-shutdown-ignites-the-market\/","title":{"rendered":"Bitcoin surges as US government shutdown ignites the market"},"content":{"rendered":"<p><b>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison )<\/b><br \/>\n<\/p>\n<div data-site=\"CoinJournal\">\n<div class=\"-mt-16  mb-8  lg:-mt-20  rounded-md  shadow-md\">\n<div class=\"relative  z-10  post-article-image  rounded  overflow-hidden\" data-site=\"CoinJournal\">\n<picture><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/09\/bitcoin-btc-smartcrop-750x375.webp\" type=\"image\/webp\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/09\/bitcoin-btc-smartcrop-363x181.webp\" type=\"image\/webp\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/09\/bitcoin-btc-smartcrop-750x375.png\" type=\"image\/jpeg\" media=\"(min-width: 750px)\"\/><source srcset=\"https:\/\/coinjournal.net\/wp-content\/uploads\/imagecache\/2025\/09\/bitcoin-btc-smartcrop-363x181.png\" type=\"image\/jpeg\"\/>\n<\/picture>                            <\/div>\n<\/p><\/div>\n<ul>\n<li>Bitcoin has surged to its highest level in over two months, above $119,000.<\/li>\n<li>The rally is a direct reaction to the US government shutting down operations.<\/li>\n<li>The shutdown is expected to create a \u201cpositive liquidity impulse\u201d for markets.<\/li>\n<\/ul>\n<p>The political paralysis in Washington has become the crypto market\u2019s rocket fuel.<\/p>\n<p>Bitcoin has surged to its highest level in over two months, blasting past the $119,000 mark as the US government officially shut down its operations, a dramatic development that traders are betting will ultimately unleash a wave of new liquidity into the financial system.<\/p>\n<p>The leading cryptocurrency has jumped nearly 4 percent in the past 24 hours, with prices briefly touching $119,455 for the first time since mid-August.<\/p>\n<p>The rally was broad-based, with other major tokens like Ether, XRP, and Solana all rising between 4 and 7 percent.<\/p>\n<p>This is the market\u2019s clear and unambiguous verdict on the chaos gripping the US capital.<\/p>\n<h2>A bet on a blind Fed, a wager on new money<\/h2>\n<p>The logic behind the rally is a bet on the second-order effects of the shutdown. With the government\u2019s lights now off, the release of key economic data\u2014most notably Friday\u2019s all-important nonfarm payrolls report\u2014will likely be delayed.<\/p>\n<p>This data blackout will effectively blind the Federal Reserve, making it far more likely to proceed with its planned interest rate cuts.<\/p>\n<p>\u201cIf ADP is a leading signal and the BLS print is delayed, the Fed is likely to deliver a 25 bp cut in October and pair it with guidance that keeps a second cut on the table by December,\u201d said Matt Mena, a Crypto Research Strategist at 21Shares.<\/p>\n<p>This is the \u201cpositive liquidity impulse\u201d that has the market so excited: an expansion of liquidity that makes it easier and cheaper to borrow money, a dynamic that encourages economic growth and, crucially, risk-taking in financial markets.<\/p>\n<p>For some, this shutdown surge is more than just a temporary trade; it is a sign of a fundamental shift in the market\u2019s DNA.<\/p>\n<p>\u201cThe message is clear: with traditional data releases in flux and macro uncertainty running high, Bitcoin remains one of the few assets that thrives when the old playbook breaks down,\u201d Mena noted.<\/p>\n<p>\u201cInvestors should be watching this moment closely \u2013 it could mark the next explosive leg higher in crypto markets.\u201d<\/p>\n<h2>The volatility trade: \u2018options look cheap\u2019<\/h2>\n<p>This expectation of an \u201cexplosive\u201d move is now being actively priced into the derivatives market.<\/p>\n<p>According to Greg Magadini, the Director of Derivatives at Amberdata, the long dry spell of low volatility may be about to end, and options are currently looking cheap.<\/p>\n<p>\u201cAfter a long \u2018dry spell\u2019 for BTC volatility, the US government shutdown could finally be the catalyst to make BTC move a lot,\u201d Magadini told CoinDesk.<\/p>\n<blockquote>\n<p>This, coupled with the steep contango in implied volatility term structure, makes options look cheap.<\/p>\n<\/blockquote>\n<p>That \u201csteep contango\u201d means the market is expecting future volatility to be significantly higher than it is today, making near-term options a relative bargain.<\/p>\n<p>Magadini highlighted the \u201clong straddle\u201d\u2014a strategy that profits from a big price move in either direction\u2014as a preferred way to play the impending volatility boom.<\/p>\n<p>\u201cThese catalysts could either cause BTC to rally (as a dollar hedge) or crash (if risk assets panic),\u201d he said, explaining why a bet on pure volatility, rather than direction, is so appealing at this uncertain juncture. The quiet days, it seems, are over.<\/p>\n<div class=\"post-meta\">\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Share this article<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Categories<\/h6>\n<hr class=\"mb-6\"\/>\n<h6 class=\"text-3xl  mb-4  text-green-300\">Tags<\/h6>\n<\/p><\/div>\n<\/p><\/div>\n<p><a href=\"https:\/\/coinjournal.net\/news\/bitcoin-surges-as-us-government-shutdown-ignites-the-market\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison ) Bitcoin has surged to its highest level in over two months, above $119,000. The rally is a direct reaction to the US government shutting down operations. The shutdown is expected to create a \u201cpositive liquidity impulse\u201d for markets. The political paralysis [&hellip;]<\/p>\n","protected":false},"author":3947362378,"featured_media":60440,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[35],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/60439"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362378"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=60439"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/60439\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/60440"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=60439"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=60439"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=60439"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}