Bitcoin Surges Past $117k Despite U.S. Shutdown; Analysts Divided on Market Impact
The longest U.S. government shutdown, lasting 35 days in late 2018, has analysts divided on its market impact. While some warn of short-term risks, others suggest limited long-term effects. Meanwhile, Bitcoin has surged above $117,000, leading an altcoin rally.
Bitcoin's climb comes despite the political deadlock, with the cryptocurrency rallying 4% and lifting altcoins like Solana, XRP, and Dogecoin. Smaller cryptos surged over 5% during the altcoin rally. Bitcoin solidified its rebound from the $109,000 support level, climbing more than 3.5% to reclaim the $117,000 mark.
Analysts suggest watching Bitcoin for supports at $110k-$112k and $106k-$108k, with resistance at $116k and $122k-$125k. However, opinions differ on the shutdown's market impact. Johnny Garcia, managing director at VeChain, believes historical data shows little lasting effect. Conversely, a Bitunix analyst notes increased volatility and caution among traders.
Despite the U.S. government shutdown fueling market volatility, Bitcoin and other cryptocurrencies continue to rally. Traders remain cautious, but the crypto market's gains persist. The long-term impact of the shutdown on markets remains uncertain, with analysts offering differing views.
