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- Bitcoin spiked past $119,000 before easing lower, a rally driven by U.S. government shutdown chaos.
- Analysts eye $120,000 resistance, with Q4 optimism hinting at a possible explosive upward breakout.
Bitcoin (BTC) surged to a six-week high, hitting $119,450 before settling near $118,577 on Thursday. The rise came as the U.S. government shut down at midnight Wednesday after the Senate failed to pass a temporary funding bill.
The top cryptocurrency gained 3.5% in the last 24 hours. Ether, XRP, Solana, and Dogecoin also rose between 4% to 7%. This rally pushed the total market value to $4.0 trillion, a 4.1% daily increase. Investors see digital assets as an attractive, safe option amid political uncertainty.
The shutdown placed about 800,000 federal workers on furlough and is expected to delay key data, such as Friday’s nonfarm payrolls. That absence of updates could inject fresh liquidity into markets, lowering borrowing costs and supporting appetite for risk assets.
Shutdown Fails to Dent Bitcoin’s Rally
Traditionally, shutdowns weigh on equities, but cryptocurrencies often benefit from the safe-haven narrative. “Markets hate uncertainty, so expect volatility to increase,” said Lucas Kiely, CEO of Future Digital. He noted that Washington may use the crisis to argue for federal workforce cuts, though the Senate is expected to block such steps.
Kiely added that a deal should arrive soon, but investors are positioning around the short-term volatility. Meanwhile, the lack of economic data is creating a market backdrop that supports alternative assets such as Bitcoin.
Matt Mena, Crypto Research Strategist at 21Shares, said the rally might signal the start of a major run. He stated,
The message is clear: with traditional data releases in flux and macro uncertainty running high, Bitcoin remains one of the few assets that thrives when the old playbook breaks down. Investors should be watching this moment closely – it could mark the next explosive leg higher in crypto markets.
BTC Q4 Rally Could Target $170,000
Market watchers believe BTC could hit a new all-time high in the fourth quarter of 2025. Data from CoinGlass shows that after a positive September, Bitcoin has historically gained over 53% on average in the fourth quarter. If this pattern repeats, BTC might reach $170,000 before the year ends.
The coin is facing resistance near $120,000, and the next target is around $124,000 if the upward move continues. However, analysts warn that a drop below $117,000 could trigger short-term pullbacks.
Crypto analyst Ted Pillows compared Bitcoin with gold and said that BTC usually follows gold’s performance with an eight-week delay. He believes the fourth quarter could reflect gold’s recent bullish trend, providing further fuel for the cryptocurrency.
