Bitcoin Soars Above $120K as US Government Shutdown Continues

Bitcoin has surged to $120,000 for the first time since mid-August, coinciding with the ongoing U.S. government shutdown. Investors are returning to Bitcoin exchange-traded funds (ETFs), with significant inflows totaling $675.8 million recently. Historically, October, referred to as 'Uptober', has been a strong month for Bitcoin, and the initial days of this month are following that trend. The cryptocurrency gained nearly 8% over the past week amidst a wider market retreat for stocks, as investors move towards safe-haven assets like Bitcoin and gold. The rise in Bitcoin's price is also attributed to expectations of potential interest rate cuts by the Federal Reserve. Moreover, traders are increasingly optimistic about Bitcoin reaching new all-time highs, with predictions rising significantly in the past 24 hours. Alongside Bitcoin, other digital assets also experienced gains, indicating a broad market rally driven by a shift in investor sentiment. The ongoing government shutdown is affecting regulatory processes, particularly with the SEC's review of ETF applications, contributing to market volatility.

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