Bitcoin Hits $118K After US Gov Shutdown: What’s Next?

Bitcoin experienced a rally as the US government entered a shutdown, reaching a two-week high. Traders are hopeful that this event may benefit Bitcoin, noting that the yield on US 10-year Treasurys has decreased, which reflects increased demand for safe-haven assets. Inflows to Bitcoin ETFs totaled $430 million, indicating a potential separation from traditional markets. However, caution prevails as investors remember the 2018 shutdown, which saw Bitcoin decline by 9% amid fears of economic slowdown. The current situation could lead to a similar economic drag due to slow government spending and delayed data releases. Despite the initial price surge, uncertainties loom large, especially with looming threats of mass layoffs if an agreement isn't reached in Congress. Overall, while the government shutdown may provide short-term support for Bitcoin prices, the sustainability of these gains remains in question as traditional markets show signs of weakness.

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