Bitcoin may rally if the U.S. government shuts down on October 1st, according to James Butterfill, the Head of Research at CoinShares. This could be because investors read the funding lapse as a sign of instability and turn to Bitcoin for refuge. This echoes the debt ceiling stalemate experienced earlier this year, which ended up bolstering Bitcoin prices.
At the time of writing, the world’s largest cryptocurrency is already up close to 4.0%, and it continues to find strong support at the $25,000 level. Additionally, Bitcoin has a history of performing quite well in times of uncertainty, such as when Silicon Valley and Signature banks collapsed earlier this year.
Martin Gruenberg, Chair of the U.S. Federal Deposit Insurance Corporation (FDIC), recently warned that inflation and higher rates continue to be a significant downside risk for the banking space. This, coupled with the possibility of a Spot Bitcoin ETF being approved, could be near-term tailwinds for BTC. Furthermore, Rob Ginsberg of Wolfe Research also said that Bitcoin was worth investing at its current price.
