Bitcoin Breaks $120K As ‘Uptober’ Momentum Rises, Shutdown Fails To Stall Gains

Core Insights - Bitcoin surpassed $120,000, continuing a strong upward trend that began in September, with October historically being a bullish month for the cryptocurrency [1][3] - The broader cryptocurrency market also experienced gains, with Ether, XRP, and Solana rising significantly, contributing to a total market value of approximately $4.2 trillion [2] - Despite the US government shutdown, which affected regulatory bodies, Bitcoin's momentum remained strong, indicating its resilience as a digital asset [3][4] Market Performance - Bitcoin's price fluctuated, dipping to $114,000 on October 1 before recovering to around $118,700 to $118,900 by October 2, with a peak of $119,500 [1] - The average gains for Bitcoin in October have been 14.4% since 2013, reinforcing the seasonal strength observed in this month [1][3] Derivatives and Trading Activity - Derivatives trading showed increased activity around key price levels, with spot volumes improving as the month progressed, suggesting a continuation of momentum [4] - Market veterans noted that the combination of calendar flows and risk appetite during Uptober typically leads to improved liquidity and higher volatility, favoring Bitcoin's price increase [3] Regulatory Environment - The US government shutdown has raised concerns about potential disruptions to the SEC and CFTC, which are crucial for the cryptocurrency market [5] - Reduced staffing at regulatory agencies may slow down innovation and impact investor confidence, with potential delays in guidance and approvals [5]