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Home News Blockchain Bitcoin Kickstarts ‘Uptober’ as Price Rallies Above $117,000 Amid U.S Government Shutdown 

Bitcoin Kickstarts ‘Uptober’ as Price Rallies Above $117,000 Amid U.S Government Shutdown 

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Bitcoin Kickstarts ‘Uptober’ as Price Rallies Above $117,000 Amid U.S Government Shutdown 

October is famously known to be a green month for Bitcoin. Since 2011, the crypto king has only recorded two red closes for the month of October: in 2014 and 2018. All the other October closes have been green, hence the name “Uptober.” 

Today – October 1, 2025, Bitcoin has started the month with over 3% rally to reach above $117,000. This rally is majorly fueled by the US government shutdown which has left over 750,000 federal employees sidelined.  

US Government Shutdown Pushes Bitcoin Above $117,000

The US entered its first federal government shutdown in nearly 7 years at 12:01 am today. This shutdown comes as lawmakers failed to approve the funding for the 2026 Fiscal Year. According to a post by The New York Times, the shutdown stems from the expiry of the federal funding on deadline day with no appropriations passed. 

The government shut down on Wednesday morning at 12:01 a.m., amid a bitter spending deadlock between President Trump and Democrats in Congress that will disrupt federal services and leave many federal workers furloughed,” The New York Times wrote in a publication

In particular, Republicans tried to stop the shutdown with a short-term stopgap bill to keep the government running until November 21. However, the Democrats blocked the proposal insisting on restoration of healthcare subsidies and roll back of the Medicaid cuts. As per a Reuters report, this measure failed in the Senate, leaving Congress deadlocked as the stopgap bill failed to meet the deadline. 

Meanwhile, the shutdown has resulted in a price surge across the crypto market. As of this writing, Bitcoin has rallied over 3% rising above $117,000 for the first time since September 18. 

Additionally, other cryptocurrencies have rallied in tandem. Ethereum, XRP, BNB, Solana, and Dogecoin have surged by 5.13%, 4.01%, 2.24%, 6.25% and 7.26%, respectively, over the last 24 hours, per data by CoinMarketCap. 

Why is BTC and Altcoins Rallying Amidst US Government Shutdown? 

With the US Federal government now on shutdown, investors have shifted their focus from the equities market. The uncertainty looming over the federal spending, has resulted in negative sentiment for these markets. Meanwhile, cryptocurrencies are gaining traction as investors view them as safer havens. 

Additionally, there is a change in liquidity. At the moment, traditional markets are facing an information gap as a result of the shutdown and suspension of some government operations, including economic reporting. This has in turn eroded the confidence of traditional financial market investors. 

Meanwhile, the trading volumes of top cryptocurrencies including Bitcoin and Ethereum are rising as investors rush for liquidity in digital assets. Market watchers, including Colin, expressed the correlation between the crypto market pump and the US government shutdown. He wrote;

https://twitter.com/ColinTCrypto/status/1973406996960272723

However, investors should bear in mind that, traditionally, U.S government shutdowns (unless prolonged) have not had much direct economic effect. The current impact on the crypto market may thus be more psychological than fundamental. Perhaps, traders are pricing or future financial struggles and U.S debt problems rather than the shutdown itself. 

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