US Government Shutdown: Why Crypto Is UP as Gold Lags
Shutdown Shakes Confidence in Traditional Markets
The US government shutdown is rattling traditional financial markets, creating uncertainty around fiscal policy, government spending, and economic stability. In times like this, investors often flock to safe-haven assets. Historically, gold has been the first choice — but this time, the momentum is shifting elsewhere.
Bitcoin Price Leads the Charge
Bitcoin ($ BTC ) has surged past $118,000, gaining over 6% in the last week and showing resilience while equities and gold remain mixed. Its 24-hour volume of nearly $70 billion underscores that institutional and retail investors are actively rotating into crypto despite the broader macro turbulence.
The narrative of Bitcoin as “digital gold” is being tested — and so far, $Bitcoin is outperforming its traditional counterpart.
Bitcoin Price in USD over the past week - TradingView
Altcoin News: Showing Strong Momentum
It’s not just Bitcoin. The broader altcoin market is flashing green:
- Ethereum ($ETH): Up more than 8% in seven days, holding above $4,300, positioning itself as the backbone of decentralized finance.
- Solana ($SOL): The standout, climbing nearly 10% in a week, fueled by rising on-chain activity and strong liquidity.
- BNB ($BNB): Steady growth of over 4% weekly, showing resilience as Binance continues to maintain dominance in exchange volumes.
- Dogecoin ($DOGE): Surprisingly strong, up 10% weekly, as retail flows look for high-volatility plays.
- Cardano ($ADA): Posting an 8% weekly gain, proving that investors still see value in established altcoin projects.
This synchronized rally shows that the rotation is not just a Bitcoin phenomenon — it’s a broad-based crypto move.
Total crypto market cap in USD over the past week - TradingView
Why is Gold Down?
Gold, the classic crisis hedge, is lagging despite the shutdown. Analysts suggest that younger investors increasingly see Bitcoin as the hedge of choice, offering higher potential upside and global accessibility. Unlike gold, crypto markets trade 24/7 and provide instant liquidity — crucial in volatile political moments.
Temporary Boost or Structural Trend?
The key question is whether this rally is a short-term reaction to political gridlock or evidence of a structural shift. Shutdowns typically resolve, and risk assets can retrace once clarity returns. However, the fact that crypto is outperforming gold during such a high-stakes event suggests an evolving role for digital assets as part of the global safe-haven landscape.
What to Watch Next
- Duration of the shutdown: the longer it lasts, the stronger crypto’s case as a hedge.
- Gold vs. Bitcoin flows: a sustained divergence could signal a generational shift.
- Altcoin leadership: tokens like $SOL and $ETH may drive the next leg higher if momentum continues.
For now, crypto is the clear winner of the US shutdown standoff.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Textbook Liquidation: Monero Whale Faces $1.9M Loss in Leverage Trade
- A Monero whale's 3× leveraged $5.6M long position was liquidated at $0.02298, resulting in a $1.9M loss amid volatile price swings. - The trader initially gained $654K as MON surged but faced rapid reversal, highlighting risks of overleveraging in low-liquidity altcoins. - Analysts warn such high-risk strategies amplify both gains and losses, with liquidation margins often razor-thin in speculative crypto markets. - The event sparked mixed market reactions, with some viewing it as a cautionary tale while

Bitcoin News Today: BlackRock's ETFs: Institutional Embrace of Bitcoin Drives $245 Million in Revenue
- BlackRock's Bitcoin ETF (IBIT) drove $42.8M inflows on Nov 27, stabilizing BTC's $90K rebound amid macroeconomic uncertainty. - ETFs now hold 3% of Bitcoin's supply and $18.88B in ETH assets, shifting institutional focus from speculation to long-term accumulation. - Grayscale's Zcash ETF filing highlights growing altcoin demand, with ZEC surging 500% in two months amid privacy token trends. - Nasdaq's proposed IBIT options expansion to 1M contracts would align the ETF with major benchmarks like SPY, refl

Algorand - Has Declined 58.36% This Year Due to Market Fluctuations
- Algorand’s (ALGO) price fell 58.36% year-to-date, despite a stable 24-hour close of $0.1393. - The token ranks #86 with $1.23B market cap, attracting institutional interest but failing to sustain gains. - Founded by MIT’s Silvio Micali in 2017, Algorand aims to solve blockchain’s scalability-trilemma but faces adoption skepticism. - With 8.8B of 10B tokens in circulation, limited inflationary pressure contrasts with macroeconomic-driven price declines. - Analysts highlight the need for clearer enterprise
TAO Halving: Will It Spark an AI-Crypto Rally or Trigger a Prolonged Correction?
- Bittensor's first TAO halving (mid-Dec 2025) cuts block rewards by 50%, aiming to reduce inflation and boost price potential through supply scarcity. - Market analysts compare this supply-driven mechanism to Bitcoin's halving pattern, noting intensified miner competition and potential bullish cycles. - While reduced liquidity and macro risks (regulation, supply chains) persist, AI sector growth (e.g., Fluence's $5.3B backlog) could amplify TAO's post-halving momentum. - The automatic halving requires no

