News View Non-AMP

Bitcoin Price to the Moon? US Government Shutdown Could Trigger Bull Rally

Published by
Zameer Attar

Bitcoin (BTC) could be on the cusp of a significant price surge if the US government experiences a shutdown beginning on October 1, 2023. This prediction is based on historical precedents where Bitcoin experienced a rally during times of financial uncertainty. 

The connection between Bitcoin’s prices and the decisions of the Federal Reserve is well-documented. Yet, the king has consistently thrived during US government shutdowns and banking crises. Additionally, cryptocurrency experts speculate that if Bitcoin manages to breach the $30,000 mark, it could trigger a psychological boost among traders. This surge might be attributed to the looming cloud of fear, uncertainty, and doubt (FUD) cast by the US government closure.

So, where is Bitcoin headed? Let’s dive in.

The Markets Are Bullish for Bitcoin

Earlier in 2023, Bitcoin saw a boost in its price due to the regional banking crisis triggered by bank runs at influential institutions like the Silicon Valley Bank. Similarly, concerns over a potential US government shutdown have led to upward movement in BTC’s price. Meanwhile, Bloomberg experts suggest this could be catastrophic for the US banking sector.

Stephane Ouellette, co-founder of FRNT Financial, noted that Bitcoin’s rally could serve as a hedge against potential banking turmoil. Notably, this sentiment aligns with recent comments from Martin Gruenberg, Chair of the US Federal Deposit Insurance Corporation (FDIC), who highlighted significant risks to the banking industry due to inflation and high interest rates. 

James Butterfill, head of research at a crypto asset manager, also backed this sentiment, drawing attention to a previous debt ceiling stalemate that contributed to a surge in Bitcoin prices. 

“This scenario resembles the debt ceiling stalemate experienced earlier this year, which ended up bolstering Bitcoin prices.”

Read More: How Will The U.S. Government Shutdown Impact the Crypto Industry?

This Will Be a Balancing Act

While a government shutdown might trigger a Bitcoin rally, it could also lead to liquidity challenges for crypto businesses. Additionally, the US Securities and Exchange Commission (SEC) may cut down its staffing at a crucial time when considering the approval of Ethereum futures ETFs. There’s speculation that the Valkyrie Bitcoin and Ether ETFs launch might be expedited due to the SEC’s contingency plans in anticipation of a potential shutdown.

Previous government shutdowns have nalso egatively impacted decision-making for cryptocurrency-related businesses. For example, an ambitious proposal for a bitcoin exchange-traded fund may get shelved, with insiders pointing to the shutdown as the cause.

Can Bitcoin Hit $30,000 by End of 2023?

Currently, Bitcoin is in a bear trap. Therefore, traders and experts find themselves debating whether it will reclaim $30,000 before the year ends, especially since Bitcoin is susceptible to interest rate swings, macroeconomic conditions matter.

Following the Federal Reserve’s aggressive tightening program to curb record-high inflation, rates remain high. Next comes the US government shutdown, which may create FUD with significant selling pressure in the market. It will be interesting to see if BTC can hit a new ATH in this changing dynamic.

Zameer Attar

Zameer is a financial analyst and writer with a particular interest in cryptocurrency markets. He has been studying cryptocurrencies and their market behavior for several years and deeply understands the factors that affect the price of cryptocurrencies. His expertise lies in his ability to use both technical and fundamental analysis to make informed predictions about the future direction of cryptocurrency prices. He has a strong understanding of market sentiment and uses this to inform his trading decisions and price predictions.

Recent Posts

XRP News Today: Price Rises 4%, Ripple Outpaces BTC and ETH in South Korea

After dipping to a low of $1.96, XRP has made a strong comeback, gaining more…

April 5, 2025

Ripple Lawsuit News: Ex-SEC Lawyer Reacts to Unusual XRP Filing by $10M Fined Stock Dealer

Ripple’s CEO, Brad Garlinghouse, recently shared a video celebrating what he called a victory in…

April 5, 2025

SEC Eases Up On Stablecoins — But Not All Of Them Make The Cut

The U.S. SEC is taking a step back from certain stablecoins, saying they don’t count…

April 5, 2025

Solana (SOL) Poised to Hit $145 Level, Here’s Why

SOL, the native token of the Solana blockchain, seems to be shifting its bearish market…

April 5, 2025

Time to Buy Ethereum? Whales Buy 15,563 ETH Amid Price Crash

Despite the bearish market sentiment, crypto whales are showing strong interest in Ethereum (ETH). Data…

April 4, 2025

Navigate the Markets with Confidence: OnEquity’s Comprehensive Trader Glossary

March 2025 – In the dynamic world of trading, a solid understanding of key terms…

April 4, 2025