Bitcoin surged to a seven-week high on Thursday, lifted by “Uptober” optimism and growing expectations of fresh liquidity in crypto markets following the U.S. government shutdown.
The world’s largest cryptocurrency traded 3.7% higher at $118,481.5 by 02:10 ET (06:10 GMT), marking its highest level since mid-August. Bitcoin also briefly surpassed $119,000 within the past 24 hours.
Uptober optimism drives gains
“Uptober” – a blend of “Up” and “October” – reflects the strong historical performance of cryptocurrencies in October. Traders view the month as a psychological pivot, with early momentum often fueling continued gains.
This year’s rally was further boosted by late September’s forced liquidations, which left markets oversold. Institutional buyers and large investors, known as whales, helped absorb that selling pressure, paving the way for renewed confidence.
Shutdown liquidity hopes support Bitcoin
Another factor behind the rally was the expectation that the U.S. government shutdown could indirectly inject liquidity into markets. The shutdown, triggered by Congress failing to pass a funding bill, has forced federal operations to scale back and delayed major economic data releases, including Friday’s crucial jobs report.
With less data available, the Federal Reserve may rely more on forward guidance, and investors expect the central bank could lean toward policy easing once clarity returns. This environment often benefits Bitcoin and other risk assets.
Altcoins follow Bitcoin higher
Other cryptocurrencies also rallied strongly. Ethereum, the second-largest crypto, jumped 6.2% to $4,382.92. XRP gained 4.6% to $2.96. Solana rose 8%, Cardano climbed 7%, and Polygon added 6.4%.
Meme tokens also saw heavy buying, with Dogecoin surging nearly 10% and $TRUMP rising 5.4%.
