Bitcoin surges to 2-month high of $120K amid US political turmoil and ETF demand

Bitcoin surged to a two-month high of $120,124 on Friday, fueled by robust inflows into US spot Bitcoin ETFs and growing speculation that a potential US government shutdown could push investors toward safe-haven assets.

As of 11:01 am IST, the world’s largest cryptocurrency was up 1.26% over the past 24 hours at $120,056 and gained around 9.60% in the one week. Ethereum went up by 2.12% to $4,483. XRP, BNB, Solana, Tron, and Dogecoin, Hyperliquid, and Cardano advanced up to 6%. The overall cryptocurrency market capitalisation went up by 1.72% to $4.14 trillion, according to CoinMarketCap.

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According to CoinSwitch Markets Desk, Bitcoin’s surge is its highest level in two months, amid the official US government shutdown and strong inflows into US spot Bitcoin ETFs, their best day since mid-September, and this reflects growing investor appetite for hedge assets such as Bitcoin and gold amid heightened macroeconomic uncertainty.

“The momentum has also led to capital rotation into established altcoins like Ethereum, Litecoin, and XRP, strengthening the broader market. Seasonality further supports this trend, as October, often referred to as ‘Uptober’, has historically been Bitcoin’s strongest month. With September closing on a higher base than usual, the outlook for Q4 remains constructive, supported by the fact that Bitcoin has ended four of the last five quarters in positive territory,” CoinSwitch Markets Desk further commented.

In the past one week, Ethereum has surged by 13.42% whereas BTC surged by 9.64%, according to CoinMarketCap.

Edul Patel, CEO of Mudrex, says that the crypto market is on a strong bullish momentum with Bitcoin trading above $120,000 while Ethereum has reclaimed the $4,500 mark and also multiple factors, such as the ‘Uptober’ sentiment, the impact of the US government shutdown, whale inflows, and the weak ADP employment report, have fueled the ongoing rally.

Patel also adds that if Bitcoin breaks past $123,200, it could enter price discovery, making way for new highs.

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Tech View by Parth Srivastava, Head of Quant at 9Point Capital’s Research Team

Bitcoin holds steady near support, and our stance remains unchanged: dips are for buying, not fearing. Negative funding rates are flushing out excess leverage, clearing the path for stronger hands. As the dust settles, the setup tilts bullish, and we expect BTC to resume its rally just as we’ve been saying all along.