The price of Bitcoin has soared to an impressive $125,000, largely fueled by a surge in interest from retail investors.
Amidst the ongoing shutdown of the US government, concerns over governance risks have escalated. This uncertainty has prompted many investors to seek refuge in stable assets such as Bitcoin.
According to insights from QCP Capital, a firm specializing in cryptocurrency trading and analysis, Bitcoin’s climb past $125,000 is primarily driven by retail demand during this period of governmental instability.
This upward trend indicates that investors are once again accumulating Bitcoin. Retail buyers are actively purchasing through spot markets while larger holders prefer to keep their coins off exchanges for long-term storage.
Bitcoin’s role as a safe-haven asset is becoming more pronounced during federal shutdowns. These events not only pause non-essential services but also delay the release of crucial economic data, thereby increasing volatility and uncertainty within traditional financial markets.
The current US government shutdown has led to furloughs at various agencies including the SEC. This situation could potentially slow down or postpone approvals and reviews related to cryptocurrencies.