Will a Government Shutdown Boost Crypto Prices?

Core Insights - Bitcoin surged past $117,000 on October 1, recovering from September losses, amidst a U.S. government shutdown for the first time in seven years [1] - Both gold and the S&P 500 reached new record highs, raising questions about the relationship between these surges and the government shutdown [1][2] Market Reactions - Some analysts suggest that the rise in Bitcoin supports its status as a safe-haven asset, although the concurrent rise in stocks indicates other influencing factors [2] - Optimism surrounding traditional market gains in "Uptober" and potential interest rate cuts may also be contributing to the market dynamics [2] Impact of Government Shutdown on Crypto - Historical data shows that previous government shutdowns have not significantly impacted financial markets, particularly for long-term investors [4] - A prolonged shutdown could dampen investor risk appetite, especially if it leads to federal job layoffs, which may affect consumer sentiment and confidence in U.S. markets [5][6] ETF Approval Delays - The ongoing government shutdown could delay the approval of spot crypto ETFs, as the SEC may struggle to operate effectively with a reduced workforce [7][9] - Anticipation for crypto ETF approvals has been high, especially following the SEC's announcement of a streamlined process, but the shutdown complicates this situation [9]