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Bitcoin and Gold Jump as Stocks Dip Amid US Government Shutdown
Yahoo Financeยท 2025-10-01 15:13
Core Insights - Bitcoin and gold have seen significant price increases amid a downturn in the stock market due to the U.S. government's first shutdown in nearly seven years [1][2][3] - Bitcoin rose 3.6% to $117,293, marking its highest price in about two weeks, and has increased over 7% since Sunday [1] - Gold reached a new all-time high above $3,922 per ounce, recently priced at $3,902, up 4.6% in the last week [2] Market Reactions - The traditional financial market experienced declines, with the S&P 500 and Nasdaq composite both falling half a percentage point at market opening [3] - The uncertainty surrounding the duration of the shutdown and its macroeconomic impact remains, as key economic data collection is halted [4] Historical Context - The last government shutdown in December 2018 resulted in a 9% drop in the S&P 500, marking the worst December since 1931 [5] - Historically, Bitcoin has moved in correlation with the stock market, but recent trends suggest a potential decoupling [5][6] Analyst Perspectives - Analysts believe that if Bitcoin can maintain independence from stock market movements, it could significantly increase its value [6][7] - Current market sentiment is bullish, with a 65% probability of Bitcoin reaching $125,000 before falling to $105,000 [7]