Bitcoin has surged to $US120,000 for the first time since hitting a record high seven weeks ago. This increase coincides with growing speculation that the US government shutdown will drive investors toward safe-haven assets. Advocates have long referred to the original cryptocurrency as “digital gold,” suggesting it could serve a similar role to the precious metal during times of economic uncertainty. Gold itself retreated from a record high on Thursday.
Karim Dandashy, an over-the-counter trader at crypto trading firm Flowdesk, noted that the macro theme seems to have taken hold of Bitcoin. Flowdesk is a crypto trading firm that provides over-the-counter trading services. Dandashy highlighted the substantial $US1.5 billion ($2.3 billion) of ETF inflows week-to-date, suggesting Bitcoin is attempting to catch up to gold’s recent gains.
The largest digital asset by market value has risen for a sixth consecutive day, gaining approximately 10 per cent since Friday. As of 2.37pm in New York, Bitcoin was around 2 per cent higher at $US120,163, nearing its record of $US124,514 reached on August 14. Smaller, more volatile tokens experienced even greater gains, with Solana, Litecoin and Dogecoin all rising significantly.
Crypto-related stocks also rallied. Exchange operator Coinbase Global rose 7.8 per cent, bitcoin treasury firm MicroStrategy climbed 3.5 per cent and miner MARA Holdings edged up 2.1 per cent. MicroStrategy is a company that acquires, holds, and sells bitcoins. These movements indicate a broader positive sentiment within the cryptocurrency market.
