Shutdown, Gold Rally Fuel Bitcoin’s Push Toward Record Highs

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Bitcoin’s march toward $121,000 is being fueled by a confluence of macro factors, including a US government shutdown and a powerful rally in gold. As Ethereum also hit a three-week high, analysts are pointing to a “debasement trade” where investors flock to non-sovereign assets.

“The same tailwinds that have historically pushed equities higher during shutdowns appear to be in action for crypto,” one observer noted, referencing the S&P 500’s perfect record during such events since 1990.

JPMorgan analysts added a quantitative perspective, stating Bitcoin is undervalued relative to gold and has a price target of $165,000. According to John Haar of Swan Bitcoin, this is part of a larger shift: “We’re watching a shift from speculative trades to strategic allocations… bitcoin is increasingly seen as a liquid, non-sovereign reserve asset.”