Bitcoin and Ethereum, the world’s leading cryptocurrencies, recorded sharp gains over the weekend as investors flocked to digital assets amid growing uncertainty surrounding the ongoing U.S. government shutdown. The renewed optimism in the crypto market reflects a broader shift in investor sentiment toward alternative assets, as the U.S. dollar continues to lose its traditional status as a safe haven.
Market analysts attribute the latest surge to rising demand for “store-of-value” assets like Bitcoin and gold, as the prolonged political stalemate in Washington fuels investor anxiety. The rush into crypto pushed the global cryptocurrency market capitalization to approximately $4.2 trillion, representing a 62-basis point jump in just 24 hours.
At press time, Bitcoin (BTC) was trading around $124,000, while Ethereum (ETH) surpassed the $4,500 mark—its highest level in months. The price of Bitcoin briefly touched a new all-time high above $125,000 on Saturday, according to data from Glassnode, which also reported that BTC exchange balances had fallen to a six-year low. The decline in exchange balances indicates that fewer coins are available for immediate sale, often a bullish sign for prices.
The latest rally comes amid increasing signs that the U.S. government shutdown is spurring investors to reposition their portfolios toward risk assets and digital currencies. As the political impasse drags on, confidence in traditional markets appears to be waning, with traders betting on Bitcoin and Ethereum as resilient alternatives.
In parallel, Ethereum saw renewed momentum after Wall Street banking giant Citigroup issued a bullish target that places the token’s potential value 20% above its current trading price. ETHUSD hovered around the $4,500 range for most of Sunday before breaking through the threshold, aligning Citi’s positive forecast with ongoing technical momentum.
One of the biggest catalysts behind Bitcoin’s latest price surge is the massive inflow of funds into U.S.-listed spot Bitcoin Exchange-Traded Funds (ETFs). Reports suggest that net inflows into these funds reached approximately $3.24 billion within the past week, signaling robust institutional interest in Bitcoin exposure.
In addition, a weakening U.S. dollar and stronger equity market performance have contributed to the ongoing rally. With the amount of Bitcoin held on centralized exchanges decreasing, the available supply for trading has become more limited. This tightening supply—paired with strong ETF inflows—creates conditions for sharp price movements when new buyers enter the market.
However, analysts warn that such momentum can magnify both upward and downward movements, making the current phase potentially volatile. Still, the overall sentiment remains bullish, with many market watchers believing that cryptocurrencies could continue to outperform traditional assets if the U.S. government’s political gridlock persists.
