US shutdown boosts Bitcoin toward 118k as regulators pause approvals

The United States entered a partial government shutdown on October 1, and markets responded immediately: Bitcoin climbed to roughly $116,000 to $117,000 while gold hit a record near $3,895 an ounce, as investors weighed political uncertainty, weak private payroll data and the prospect of easier Federal Reserve policy. The shutdown followed a failure by Congressional leaders and the White House to agree on funding, triggering contingency measures that furloughed hundreds of thousands of federal workers and raised doubts about the timing of regulatory approvals and economic releases.

Traders pointed to a mix of catalysts for the crypto move. Private payroll figures from ADP showed a surprise loss of roughly 32,000 jobs in September, intensifying bets that the Fed may ease policy sooner than previously expected. Softer labor market data and delayed government reports, including the official jobs and inflation releases, have increased expectations for rate cuts, a development that often boosts risk assets by loosening financial conditions.

At the same time, technical factors kept the market cautious. Bitcoin briefly approached resistance near $118,000 but had not cleared last...