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Bitcoin surged to a seven-week high on Thursday, lifted by seasonal “Uptober” momentum and expectations that the ongoing U.S. government shutdown could inject fresh liquidity into crypto markets.
The world’s largest cryptocurrency rose 3.7% to $118,481.5 by 02:10 ET (06:10 GMT), briefly breaking above $119,000 for the first time since mid-August.
Uptober Optimism Builds Momentum
The rally is partly attributed to “Uptober,” a term blending “up” and “October,” which reflects a historical seasonal bias toward strong crypto gains during the month. Early-month rallies often create a psychological boost for traders, reinforcing bullish sentiment.
Oversold conditions from late September, following a wave of forced liquidations, set the stage for the rebound. Large investors and institutional funds stepped in to absorb selling pressure, further fueling confidence.
U.S. Government Shutdown Seen as Liquidity Driver
Another key catalyst has been the partial shutdown of the U.S. federal government, which began this week after Congress failed to approve a stopgap funding bill.
The closure is expected to delay major economic data releases, including Friday’s crucial nonfarm payrolls report. With fewer official data signals to guide policy, markets anticipate the Federal Reserve could turn more cautious, potentially leaning toward a looser stance.
Some analysts suggest that money flows could spill into functioning markets, with Bitcoin positioned as a natural beneficiary amid uncertainty.
Altcoins Ride the Wave; Dogecoin Surges
The Bitcoin rally spilled over into the broader crypto space:
- Ethereum (ETH) jumped 6.2% to $4,382.92.
- XRP climbed 4.6% to $2.96.
- Solana surged 8%, Cardano gained 7%, and Polygon rose 6.4%.
- Meme coins also rallied, with Dogecoin up nearly 10% and $TRUMP token up 5.4%.
