Bitcoin, Ethereum and XRP rose as the dollar weakened. Seasonal patterns and inflows suggest more upside.
Bitcoin climbed to about $118,000, Ethereum rose above $4,300, and XRP traded around $2.97 after the U.S. government shutdown began.
The dollar weakened, gold rallied, and paused regulatory reviews shifted short-term flows into crypto, raising Fed cut bets and lifting appetite for risk assets globally.
How The Shutdown Lifted Crypto Prices
The U.S. government shutdown effect on cryptos was immediate. It removed some scheduled economic reports and paused parts of federal oversight, which weakened the U.S. dollar and pushed investors toward alternative stores of value.
Gold hit record highs while traders rotated cash into risk assets, including Bitcoin, Ethereum and XRP. With regulatory staff reduced, ETF and IPO reviews slowed, which changed the immediate trading calculus and left some buyers to chase available crypto liquidity.
Bitcoin rose about 3% to trade above $118,000.
Ethereum gained 4% and hovered above $4,300.
XRP moved 3% and traded around $2.97.
Overall, trading volume increased over the session, showing renewed demand for cryptocurrencies.
Historical Patterns Suggest More Upside
Past government shutdowns and data gaps have often coincided with U.S. dollar weakness and stronger flows into nonyielding assets.
October has a history of positive returns for Bitcoin, which traders call Uptober, and seasonal strength can magnify moves that start from macro shocks.
Institutional demand, falling exchange reserves and higher ETF interest add fuel, and some analysts raised Ethereum targets on rising inflows. A cluster of pending spot ETF rulings for XRP in mid to late October could amplify any rally if approvals follow.
RECOMMENDED: U.S. Fed Could Soon Become A Buyer Of Bitcoin: Find Out More
Watchlist: Risks That Could Reverse Gains
The main risks are a long shutdown that keeps data and regulator work stalled, which could leave Fed timing unclear and keep rates firm. A sudden return of SEC reviews or a negative ETF ruling could trigger sharp selling.
Large liquidations, sudden liquidity gaps and headline shocks would reverse gains fast, and test investor risk management and stop orders.
ALSO READ: Week Ahead Market Shock: Will CPI & Fed Decisions Shake BTC, ETH, Gold and Silver?
Conclusion
History and flows point to more gains, but monitor the shutdown, Fed signals and regulatory updates. Trade with limits and clear stop rules for risk control.
Join eToro today and receive $10 in free crypto on your first deposit. Trade crypto, stocks, and ETFs with powerful tools and social investing features like CopyTrader™
Crypto investments are risky and may not suit retail investors; you could lose your entire investment. Understand the risks here
Which Crypto Should You Invest In Right Now?
For alerts on the key crypto assets that are primed for investment right now you should consider Join the original blockchain-investing research service — live since 2017.
InvestingHaven alerts come from a proprietary 15‑indicator methodology built over 15+ years of market experience.
You’ll be following the service that identified major turning points through crypto winters and bull runs alike
Act now and see why thousands trust us to deliver signals before markets move.
This is how we are guiding our premium members (log in required):
- Crypto Consolidation: When Will Bullish Momentum Return? (Sept 28)
- Is Meme Season Underway? (Sept 19th)
- Alt Season Is Brewing, In Silence. These 3 Charts Tell The Crypto 2025 Story. (Sept 10th)
- Is A Trendless Crypto Market Good or Bad? The Current and Emerging Winners Look Awesome. (Sept 7th)
- BTC Testing Long Term Trendline. Here Is Short and Long Term Guidance. (Aug 26th)
- Crypto – To Break Out Or Not To Break Out? (Aug 23rd)
- What Happened This Week? Leading Indicator Analysis and 7 Token Charts. (Aug 16th)
