- Bitcoin price eyes a fresh rally toward the $120,000 mark.
- The partial shutdown of the U.S. government pushed BTC past the key $117,000 level.
- A flight to safe-haven assets and market bets on Federal Reserve rate cuts could fuel bulls’ ambitions.
Bitcoin rose more than 3% after the U.S. federal government entered a partial shutdown on Wednesday, as BTC pushed above $117,000 for the first time in several weeks.
Alongside safe-haven flows into assets such as gold, investors seeking another hedge against political and economic uncertainty moved into Bitcoin.
The gains leave the flagship asset poised for another leg up toward the $120,000 threshold.
Bitcoin climbs past $117k amid a 3% jump
Bitcoin’s price rallied strongly in early Wednesday trading and broke through the $117,000 level for the first time since mid-September.
Fueled by an intraday surge of roughly 3%, BTC bulls drove prices up to around $117,400 in a rapid move that also lifted leading altcoins like Ethereum and Solana.
Institutional inflows into spot Bitcoin exchange-traded funds and liquidity moves by large holders have provided steady support amid broader market turbulence, while recent gains also reflect fresh safe-haven demand.
Shutdown acts as catalyst
Technical resilience combined with prevailing market dynamics has led analysts to predict further upward momentum for BTC.
Notably, gains over the past 24 hours have left Bitcoin trading only about 6% below its record high of $124,457 reached on August 14, 2025.
A primary catalyst appears to be market reactions to the U.S. government shutdown.
On September 30, lawmakers failed to pass continuing funding measures, and, as the deadline passed, a partial shutdown began. Stocks reacted by moving lower while gold rallied to fresh highs.
The flight-to-safety dynamic — echoed by a significant drop in the U.S. dollar index — helped propel gold’s rally.
Bitcoin, increasingly viewed by some investors as a digital safe haven, has also climbed and could target the psychologically important $120k level.
As investors react to the shutdown and to potential delays in the release of key economic data, including September’s jobs reports, BTC stands to benefit.
Gold’s rally reportedly pushed spot prices above $3,890 per ounce, and Bitcoin’s upside could accelerate as markets assess the shutdown’s implications.
🚨 GOLD JUST HIT NEW ATH
Liquidity will migrate into $BTC now
History of 2021 and 2017 is repeating
Get ready for PARABOLIC pump pic.twitter.com/i3zGvFllWO
— ᴛʀᴀᴄᴇʀ (@DeFiTracer) October 1, 2025
What else could lift Bitcoin’s price?
Private payroll data from ADP, which showed a loss of 32,000 jobs in September, has bolstered expectations for a Federal Reserve rate cut.
The U.S. central bank eased rates in September, and bets on another cut at the October 29 meeting have investors excited.
Lower rates have often been a bullish signal for risk assets, and the seasonal pattern for “Uptober” continues after Bitcoin posted gains in 10 of the past 12 Octobers.