Bitcoin Challenges Market Decline.. Surges to $116,000 Following U.S. Government Shutdown
In a notable shift, the cryptocurrency Bitcoin rose on Wednesday, defying the decline of most high-risk assets, against the backdrop of the U.S. government shutdown after lawmakers failed to reach a funding agreement.
The leading digital currency recorded a significant increase of 1.8% during trading, reaching $116,283 by 6:53 AM Eastern Time, achieving gains of nearly 3% over the past twenty-four hours.
This performance coincided with a financial crisis in Washington, where the federal government ceased operations at midnight after a funding bill in the Senate failed to secure enough votes. This development raised concerns among investors, prompting them to seek traditional and modern safe havens.
Commenting on this dynamic, market sources stated: "This move reflects the evolving perception of digital currency as a store of value in times of geopolitical turmoil, similar to gold, which surged to a record level on Wednesday."
Debate intensified in the U.S. capital over ways to end the shutdown, with Democrats led by Senator Chuck Schumer and Representative Hakeem Jeffries pushing to pass a measure that also includes "extending enhanced tax credits under the (Obamacare) program."
On the other hand, President Donald Trump threatened to cut government benefits for "large numbers of people" if an agreement is not reached soon.
Initial indicators pointed to negative repercussions on Wall Street, as stock futures indicated a weak opening, amid expectations that investors would turn to safer alternative assets _including Bitcoin_ which was also reflected in the strong demand for gold and its new record level.
It is worth noting that Bitcoin has risen by about 25% since the beginning of the year, supported by two main factors: the increasing interest of financial institutions on Wall Street in it, and the growing conviction of global investors in it as "a reliable asset allocation tool, not just a quick speculative instrument."
