- Bitcoin price eyes a fresh rally toward $120,000.
- Following a partial U.S. government shutdown, BTC has broken the key $117,000 level.
- A flight to safe-haven assets and bets on Federal Reserve rate cuts could fuel bulls’ ambitions.
The Bitcoin price climbed more than 3% as the United States federal government entered a partial shutdown on Wednesday, pushing BTC above $117,000 for the first time in weeks.
Amid a surge in safe-haven assets like gold, investors seeking protection from political and economic uncertainty flowed into Bitcoin as an alternative hedge.
These gains leave the benchmark asset poised for a renewed push toward the $120,000 level.
Bitcoin jumps above $117k amid 3% surge
Bitcoin’s price rallied sharply in early trading on Wednesday, breaking the $117,000 barrier for the first time since mid-September.
Fueled by an intraday gain of roughly 3%, BTC bulls drove prices to highs near $117,400 during a rapid ascent that also lifted major altcoins such as Ethereum and Solana.
Bitcoin price chart by CoinMarketCap
While steady institutional inflows into spot Bitcoin exchange-traded funds and movements by treasury firms have provided structural support amid broader market jitters, the latest gains align with a broader move into safe-haven assets.
Catalyst: U.S. government shutdown
Technical resilience and prevailing market conditions have led analysts to forecast further traction for Bitcoin’s price.
Notably, the recent rally has left Bitcoin only about 6% below its all-time high of $124,457 reached on August 14, 2025.
A major catalyst for the rebound appears to be the market’s reaction to the U.S. government shutdown.
On September 30, congressional leaders and President Donald Trump failed to reach an agreement on continuing government funding.
When the funding deadline passed, a partial shutdown took effect, prompting stocks to react lower while gold climbed to a record.
The resulting flight-to-safety dynamic, coinciding with a notable dip in the U.S. dollar index, helped power gold’s rally.
Bitcoin, increasingly viewed by some investors as a store of value, has also rallied and could target the psychologically significant $120,000 level.
As markets price in the shutdown and the possibility of delays to key economic releases — including the September jobs report — BTC is positioned to benefit.
Gold’s rally has driven spot prices to new peaks above $3,890 per ounce, and Bitcoin’s own momentum could accelerate as traders reassess 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 could further support Bitcoin’s price?
Data from ADP showing a loss of 32,000 private-sector jobs in September have intensified expectations for a Federal Reserve rate cut.
The U.S. central bank eased rates in September, and bets on another reduction at the Fed’s October 29 meeting have energized investors.
Lower interest rates have often been bullish for risk assets, and momentum for an “Uptober” remains plausible after Bitcoin posted gains in 10 of the past 12 Octobers.