Cryptos Rally in Wake of Shutdown Fears, Bitcoin Leads with 3.1% Gain

Cryptos Rally in Wake of Shutdown Fears, Bitcoin Leads with 3.1% Gain

As fears of a U.S. government shutdown intensified, major cryptocurrencies bucked the trend and posted strong gains on October 1. Bitcoin jumped about 3.1% to $116,312, Ethereum climbed 4.2%, Solana rose 5.7%, and XRP added ~1.4%. 

The surge is partly attributed to historical patterns: in times of U.S. fiscal uncertainty, money often flows into alternative assets, including crypto, as a hedge against dollar weakness. Some traders interpret this as a rotation out of U.S. treasuries. However, the rally comes with caveats: if the shutdown drags on, volatility could spike, and the pace of ETF listings or regulatory reforms could be disrupted.

Looking back over past years, October has often been a strong month for Bitcoin, giving market participants cautious optimism that the rally could sustain — provided macro risks don’t overwhelm momentum.