Bitcoin Surges Past $120,000 as US Government Shutdown Drives Investors to 'Digital Gold' – New All-Time High Within Reach
As federal services close during the US government shutdown, Bitcoin has made a powerful comeback, surging toward its record high of $124,000. Find out why investors are flocking to crypto during this economic uncertainty.
Bitcoin Surpasses $120,000 Despite US Shutdown Concerns
Bitcoin has made a powerful comeback on October 2-3, 2025, breaking through the $120,000 barrier and approaching its all-time high of $124,000, which was set on August 14. This surge comes at a time when market participants are closely watching the government shutdown in the United States and its potential impact on the US economy.
Bitcoin at $120,000: Approaching a New All-Time High
In recent days, Bitcoin—often dubbed "digital gold"—has once again crossed the significant threshold of $120,000. BTC prices even approached a peak of $121,000 on the evening of Thursday, October 2.
This sharp rise is attributed to concerns surrounding the US government shutdown, which became effective on October 1. The shutdown has caused significant disruptions, with the closure of non-essential federal services, seemingly prompting investors to turn to safe-haven assets.
Traditional precious metals like gold have also broken recent records, with the price of an ounce of gold (approximately 31.1g of pure metal) nearly reaching $3,900. Bitcoin appears to be confirming its status as a digital alternative to physical gold during periods of economic uncertainty.
US Shutdown: A Political Crisis with Economic Consequences
The shutdown in the United States follows Congress's inability to reach an agreement on the budget. This situation has major repercussions not only for the US economy but also for the entire global financial system.
This impasse is paralyzing many American public services—including the SEC, which has stopped processing cryptocurrency ETF applications—and is creating economic uncertainty that drives investors toward safe-haven assets like gold and increasingly Bitcoin.
If this shutdown were to be prolonged (noting that the last one in 2018 lasted more than a month), it could exacerbate fears of a recession in the United States, potentially triggering a major economic crisis on a global scale.
Bitcoin as a Digital Safe Haven in Times of Crisis
Currently, political tensions between Republicans and Democrats remain high, and there's a strong possibility that this shutdown will continue at least until next week. Faced with this uncertainty, Bitcoin is increasingly establishing itself as a safe-haven asset during crises.
The cryptocurrency's performance during this period of economic instability reinforces the narrative that Bitcoin can serve as a hedge against traditional market turbulence. As investors seek alternatives to traditional financial systems during uncertain times, Bitcoin's decentralized nature and limited supply make it an attractive option.
What This Means for Investors
For those watching the cryptocurrency market, Bitcoin's resilience during this period of economic uncertainty is particularly noteworthy. While traditional markets may fluctuate in response to the shutdown, Bitcoin has demonstrated strength, suggesting a maturing market perception of the digital asset.
Will this trend, similar to what we're seeing with gold, push Bitcoin to new heights? The coming weeks should provide more clarity on whether Bitcoin can sustain this momentum and potentially surpass its previous all-time high of $124,000.
As political negotiations continue in Washington, market participants will be keeping a close eye on both the resolution of the shutdown and Bitcoin's price action, which may continue to reflect its growing status as a digital safe haven during times of economic and political uncertainty.