Crypto market rises amid US shutdown

The crypto market reacted with growth to the political crisis in Washington. After Congress failed to approve temporary funding, the country officially entered a shutdown. Against this backdrop, bitcoin and other digital assets gained in value, while some investors saw them as a way to weather uncertainty.

Market reaction

By Thursday, bitcoin had confidently held above the $118,000 mark, showing an increase of about 3% in just one day. Ether also added roughly 3.5%, while some altcoins, including XRP and Solana, demonstrated even stronger momentum in the range of 5–6%. This growth coincided with a drop in the dollar index and a pause in the release of key macroeconomic data that usually influence the markets.

At the same time, investor reaction was mixed. Some participants used the rally to lock in profits, fearing a quick pullback, but overall interest in digital assets revived significantly. This is not the first time cryptocurrencies have become a “safe haven” during US political crises, and such behavior further strengthens their reputation as an alternative tool for preserving capital.

Why the shutdown fueled interest in cryptocurrencies

The rise of the crypto market can be explained by several factors at once. The suspension of federal agencies reduces transparency in economic forecasts and prevents investors from relying on traditional data. In addition, the shutdown increases overall instability, prompting the search for assets that are independent of government decisions. Analysts highlight a number of key reasons behind the surge of interest in digital currencies:

• expectations of a softer stance by the Federal Reserve due to the crisis;
• growing demand for decentralized assets in the face of a weaker dollar;
• strong activity from speculators using the news as a trading driver;
• gradual strengthening of crypto market infrastructure, including ETFs and derivatives.

Together, these factors made cryptocurrencies the main beneficiaries of the American budget crisis. However, experts warn that such sharp moves are often temporary and require a cautious approach.

What awaits the market in the near future

The further trajectory will largely depend on how quickly lawmakers can agree on government funding. If a deal is reached in the coming days, the crypto market may face profit-taking and a correction of bitcoin prices back to around $115,000. But if the crisis drags on, digital assets are likely to remain attractive as protection against political and currency turbulence.

Some experts believe that high volatility will persist at least until the end of October. Two main scenarios are most likely: either a correction with a return to previous levels, or consolidation at new highs if political instability in the US continues. In both cases, attention to cryptocurrencies will remain strong, and news from Washington will keep shaping market sentiment.