Bitcoin rose sharply to a seven-week high on Thursday, helped by ‘Uptober’ optimism, and expectations of a liquidity boost to crypto markets following a U.S. government shutdown.
The world’s largest cryptocurrency last traded 3.7% higher at $118,481.5 by 02:10 ET (06:10 GMT), reaching its highest level since mid-August.
The token briefly surpassed $119,000 earlier in the last 24 hours.
Uptober optimism fuels rally The term “Uptober” – a mix of “Up” and “October” – reflects a seasonal bias in crypto markets, where October has historically delivered strong performance.
Traders increasingly treat the month as a psychological inflection point, and positive momentum early in the month tends to build confidence for further gains.
This year, the narrative received a tailwind after a wave of forced liquidations in late September left oversold conditions.
Large investors called whales, and accumulation by institutional funds helped absorb some of that selling pressure earlier this week.
US shutdown could spark a positive liquidity impulse Reports cited a key driver behind today’s jump was the expectation that a U.S. government shutdown might indirectly prompt a burst of liquidity into markets.
The federal government began a partial shutdown after Congress failed to pass a stopgap funding measure.
The shutdown forces many federal operations to furlough staff, and delays or disruptions loom for major economic data releases — such as Friday’s employment figures, which the Federal Reserve uses to guide interest-rate policy.
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With key data delayed or suppressed, the Fed may lean more heavily on forward guidance or signaling, and investors might expect the central bank to ease more aggressively once clarity returns.
Also, the impulse of money may spill over into assets where markets are still functioning, with Bitcoin often in the crosshairs.
Crypto price today: altcoins jump; Dogecoin surges 10% Most altcoins also saw sharp gains, tracking the rally in the world’s largest cryptocurrency.
World no.2 crypto Ethereum jumped 6.2% to $4,382.92.
World no. 3 crypto XRP rose 4.6% to $2.96.
Solana climbed 8%, while Cardano added 7%, and Polygon jumped 6.4%.
Among meme tokens, Dogecoin advanced nearly 10%, while $TRUMP rose 5.4%.
