Bitcoin and Altcoins Rally as US Shutdown and Fed Expectations Boost Markets

With prices around $118,500, Bitcoin has jumped to its highest level since mid-August. Altcoins like Ethereum, Solana, XRP, and Cardano are also recording significant gains. “Uptober” has begun.

A shutdown has been in effect in the US since Wednesday, and analysts have been puzzling over what impact this might have on Bitcoin and the crypto markets.

The answer is simple: The Bitcoin price curve rose significantly, gaining 3.5 percent daily to around $118,500, a two-month high. Following in BTC’s wake, popular altcoins like Ethereum, Solana, Cardano, and Dogecoin are pumping, all recording daily gains of more than 5 percent.

Gold hits new all-time high due to US shutdown – stock markets neutral

The US shutdown was received less positively on the stock markets. Leading indices like the S&P 500 and Nasdaq stagnated on the first day of the lockdown, gaining less than half a percentage point.

Gold, on the other hand, temporarily surpassed the $3,900 mark, reaching a new all-time high. It appears that investors, along with gold, are viewing Bitcoin, Ethereum, Solana, and other cryptocurrencies as a way to defy the shutdown.

Investors expect interest rate cut at the end of October – Bitcoin benefits

This is due to the fact that market participants now firmly believe that the US Federal Reserve will further cut interest rates at its next meeting on October 29th. The FedWatch survey results have jumped to a 99 percent probability of a rate cut, up from just 85 percent a week ago.

Lower interest rates are positive for Bitcoin and other cryptocurrencies because they drive investors into riskier asset classes than bonds. This was also evident again in the Bitcoin ETFs, which saw more than $270 million in capital inflows yesterday, according to preliminary results. The Ethereum ETFs also enjoyed green charts.

Cardano, Litecoin, Solana, Doge and XRP are waiting for more ETFs

The prospect of further crypto ETFs is also boosting sentiment in the crypto markets. Solana, Litecoin, Cardano, Dogecoin, and XRP (Rib) are among the altcoins for which the U.S. Securities and Exchange Commission (SEC) has given the green light through a simplified approval process . Whether the SEC will make final decisions during the shutdown remains to be seen.

Conclusion: Bitcoin and Co. facing a rally due to the shutdown?

Experts had predicted increased volatility for Bitcoin during the budget lockdown, and the pendulum swung toward positive territory on day one. Ethereum, Solana, Cardano, XRP, and other altcoins followed this momentum with almost enthusiastic enthusiasm.

The beginning of the so-called ” Uptober ” could be more than just a psychological factor; historically, Bitcoin has shone with gains of around 20 percent in October. How long the shutdown in the US will last remains to be seen. At least on the first day, Bitcoin benefited from the budget dispute, pulling major altcoins from Ethereum to Solana to Dogecoin along with it.

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(Featured image by David McBee via Pexels)

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