Top cryptocurrencies led by Bitcoin, Ethereum among other surges sharply amidst U.S government political deadlock. The rally in the cryptos market was fueled by sentiment, surging demand for save haven asset in the alternative markets after dollar failed the test. To most investors, dollar has lost its allure as safe haven asset, while investors look elsewhere with interest in cryptocurrency and gold. This triggered sustained price uptick seen, lifting global cryptocurrencies market capitalisation to $4.2 trillion, up by 62 basis in the last 24 hours. Bitcoin is currently trading around $124,000 and Ethereum is above $4,500 already at the press time.
The price of Bitcoin hit a new all-time high of over $125,000 on Saturday, as BTC exchange balances, the number of coins held by exchanges available for purchase, hit a six-year low, according to data from Glassnode.
BTCUSD surged amid a government shutdown in the United States and a rise in the prices of safe-haven, store-of-value, and risk-on assets. The token was charting fresh record highs early Sunday as traders rushed back into risk assets amid the ongoing US government shutdown.
Ethereum also pressed higher after the Wall Street bank slapped the token with a target that’s above the record high and 20% away from current prices. ETHUSD moved closer to reclaiming $4,500, and hovered around the price for 24 hours before it breached the barrier. A decisive break above would line up Citi’s bullish call with technical momentum.
Based on reports, a large wave of demand through US-listed spot Bitcoin ETFs has been a key fuel for the move, with weekly net inflows into those funds reported at around $3.24 billion. Investors and traders also pointed to a weaker US dollar and broader equity strength as helping push prices higher. The amount of Bitcoin kept on centralized exchanges has fallen, which reduces immediate sellable supply when buyers step in. That thinning supply, combined with fresh ETF demand, is a recipe for sharper moves in price when flows spike. Market watchers caution that such patterns can amplify both ups and downs.
Bitcoin, Ethereum spike amidst U.S. govt. shutdown
