Bitcoin and Ethereum Stabilize as US Shutdown Enters Third Week

Core Insights - Bitcoin and Ethereum have stabilized after recent volatility, with Bitcoin trading at $112,127 and Ethereum at $4,094, reflecting gains of about 1% and 3.6% respectively in the past day [2] - Bitcoin is currently less than 12% off its all-time high of over $126,000, while Ethereum is about 18% below its record [2] - Gold has reached new highs above $4,200 per ounce, driven by macroeconomic factors and a shift in market narrative towards liquidity-driven dynamics [3] Market Dynamics - The market narrative is shifting from being rate-sensitive to liquidity-driven, with central bank buying and institutional portfolio hedging becoming key drivers for gold prices [3] - There is ongoing discussion about Bitcoin's role in the "debasement" trade, where it is used alongside precious metals and stocks to hedge against weakening fiat currencies [3][4] Economic Data Impact - The U.S. government shutdown has delayed the release of the September Consumer Price Index (CPI) data, which is crucial for informing U.S. monetary policy [4][6] - The Bureau of Labor Statistics has announced that the CPI report will now be released on October 24, just ahead of the next Federal Open Markets Committee meeting [6] Historical Context - The Federal Open Markets Committee has previously had to make monetary policy decisions with limited economic data during past government shutdowns, notably during President Bill Clinton's administration [7]