US government shutdown triggers big spike in crypto market, what’s the outlook for October?

Jakarta, Pintu News – Global financial markets were recently shocked by the news of the US government shutdown. In contrast to traditional financial markets that tend to experience declines, crypto markets showed the opposite reaction with broad-based asset prices rising.

Causes of Crypto Price Spikes

Bitcoin (BTC) managed to break the $116,000 mark, up almost 3% in a day, while Ethereum (ETH) is back above $4,280 with a similar rise. Solana (SOL), Cardano (ADA), and Ripple (XRP) also followed suit with significant gains of between 3-5%. Tokens with smaller market capitalizations such as PUMP showed high volatility, with peaks of more than 20%.

This rise comes amid political uncertainty in the US, where normally equity markets would be negatively affected. However, crypto markets are often considered a safe haven in such situations. Additionally, the increase in trading volumes for Bitcoin (BTC) and Ethereum (ETH) indicates a shift in liquidity to digital assets.

Also Read: 5 Reasons Eric Trump’s IDR16 Billion Bitcoin Prediction Could Be Real

Real Impact on the Market

While the US government shutdown has historically not had a large direct economic impact, unless it lasts a long time, the impact on crypto is more psychological than fundamental. Market participants may be factoring in potential future financial problems and US debt issues, not just the shutdown itself.

On the technical front, Bitcoin (BTC) is showing bullish signals by successfully breaking the 50 EMA on the four-hour chart, and the Relative Strength Index (RSI) is still below overbought levels, indicating further upside potential.

Ethereum (ETH) is also in a similar situation, but if this rise is only driven by sentiment related to the shutdown, there will likely be a fall back when the political situation improves.

Bitcoin as an Escape Mechanism

Bitcoin (BTC) was created as an escape mechanism during periods of institutional uncertainty, and the market is treating it as such today. While the US government shutdown may not have a direct impact on crypto fundamentals, the flow of risk hedging into digital assets shows that Bitcoin (BTC) is still considered a reliable asset in the face of uncertainty.

This rise shows that investors see crypto not only as a speculative asset, but also as a safe haven asset under certain conditions. This confirms crypto’s position as an important component in portfolio diversification amid global uncertainty.

Conclusion

With market dynamics constantly changing, the US government shutdown provides an important lesson on how crypto markets can react to global events. While the current price increase may be temporary, the confidence shown by investors in crypto as a safe haven asset remains an important factor in market analysis going forward.

Also Read: 5 Reasons XRP Could Hit IDR66,000 by the End of 2025: ETFs, Fed, & Crypto Market Momentum

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying andselling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• U.Today. Bitcoin ATH: US Government Shutdown Triggers Massive Crypto Pump. Accessed on October 2, 2025