- Bitcoin price targets a fresh rally toward $120,000.
- A partial U.S. government shutdown pushed BTC past a key level at $117,000.
- A flight to safe-haven assets and market bets on Fed rate cuts could fuel bullish momentum.
Bitcoin rose more than 3% as the United States federal government entered a partial shutdown on Wednesday, driving BTC above $117,000 for the first time in several weeks.
Amid a spike in safe-haven assets like gold, investors seeking alternative protection from political and economic uncertainty flowed into Bitcoin.
The move leaves the benchmark crypto positioned for another push toward the $120,000 mark.
Bitcoin tops $117,000 after a 3% jump
Bitcoin surged in early trading on Wednesday, breaking above $117,000 for the first time since mid-September.
With intraday gains of roughly 3%, Bitcoin bulls pushed the price to a high near $117,400 during the rapid move, which also lifted major altcoins such as Ethereum and Solana.
Chart of Bitcoin price from CoinMarketCap
While institutional inflows into spot Bitcoin ETFs and treasury moves by corporate holders have provided steady support amid broader market volatility, the latest gains align with renewed demand for defensive assets.
Shutdown reaction acts as a catalyst
Technical resilience and prevailing market conditions have led analysts to forecast further upside for BTC.
Notably, the recent rise leaves Bitcoin just about 6% below its all-time high of $124,457 reached on August 14, 2025.
The market’s reaction to the U.S. government shutdown appears to be a significant catalyst for the move higher.
On September 30, congressional leaders and President Donald Trump failed to reach an agreement to extend federal funding.
When the deadline passed, a partial shutdown began: equities moved lower while gold climbed to new highs.
The flight to safety, paired with a notable drop in the U.S. dollar index, helped lift gold prices.
Bitcoin, which has drawn attention as a potential safe-haven and portfolio diversifier, also rallied and could target the psychological $120,000 level.
As investors react to the shutdown and the prospect of delays in the release of key economic data — including September’s employment report — BTC appears well positioned to benefit.
Gold’s rally likely pushed spot prices above $3,890 per ounce, and Bitcoin’s gains may accelerate as markets fully price in the shutdown’s consequences.
🚨 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 help Bitcoin’s price?
Private ADP payroll data showing a loss of 32,000 jobs in September fueled expectations for Fed policy easing.
The U.S. central bank cut rates in September, and markets are increasingly pricing in another cut as soon as October 29, driving investor speculation.
Lower interest rates are often bullish for risk assets, and the signs of a strong October—“Uptober”—remain in place after Bitcoin posted gains in 10 of the last 12 Octobers.