03.10.202515:32 Forex Analysis & Reviews: Bitcoin's rally going on, despite US government shutdown

Bitcoin has hit another peak, returning to the $120,500 area, signaling that demand remains strong. At the start of the week, many feared that the US government shutdown would negatively impact demand for risk assets. However, the closure of several federal institutions has actually triggered a wave of buying.

Due to the shutdown, the Securities and Exchange Commission has switched to emergency operations and won't be approving new products—including spot crypto ETFs—until the crisis is resolved. Still, investors and traders, spooked by the potential problems the US economy could face post-shutdown, have chosen to protect themselves by investing in digital assets, particularly Bitcoin.

This sudden pivot toward crypto—despite regulatory hurdles—highlights its growing status as a potential safe haven in times of economic uncertainty. Traditionally, investors have turned to gold or government bonds during crises, but the increasing recognition and acceptance of cryptocurrencies, especially Bitcoin, is making them a more appealing alternative.

The SEC's shutdown-related delay in approving spot crypto ETFs will undoubtedly disappoint many market participants who had high hopes for this instrument. However, the increased demand for Bitcoin, driven by economic instability fears, may offset this delay in the short term. In the long term, approval of spot crypto ETFs remains a critical goal for the industry, as it would open crypto access to a broader range of investors and further solidify its legitimacy.

Still, the current situation underlines the ability of digital assets to attract capital even under regulatory pressure and macroeconomic instability—sending a positive signal for the future of the crypto industry.

Trading recommendations

Bitcoin (BTC) From a technical perspective, buyers are now targeting a return to the $120,900 level, which would pave the way toward $123,000, followed closely by a potential push to $125,900. The furthest target stands at the $126,400 area. Breaking above that would confirm the strengthening of a bullish market. In case of a decline, buyers are expected to step in around the $119,000 level. A drop below this area could quickly push BTC down toward $117,100, with the most distant downside target around $115,100.

Ethereum (ETH) Ethereum's clear hold above the $4,533 level opens a path toward $4,616. The furthest upside target is the $4,697 area. Breaking above it would signal a strengthening bull market and growing buyer interest. In case of a pullback, buyers are expected around the $4,432 level. A move back below this zone could send ETH quickly down toward $4,331, with a deeper support level at $4,235.

What's on the chart

• The red lines represent support and resistance levels, where price is expected to either pause or react sharply.
• The green line shows the 50-day moving average.
• The blue line is the 100-day moving average.
• The lime line is the 200-day moving average.

Price testing or crossing any of these moving averages often either halts movement or injects fresh momentum into the market.