Bitcoin has recovered to trade above the $114,000 level as investors run for alternative stores of value amid the US government shutdown.
Bitcoin BTC $68 952 24h volatility: 0.8% Market cap: $1.38 T Vol. 24h: $39.32 B exchange-traded funds (ETFs) have recently seen a surge in investor appetite, recording a net inflow of $430 million on Sept. 30 alone. The funds brought the cumulative inflow to over $950 million in just two trading sessions this week.
This turnaround comes after a week that mostly saw outflows, weighing heavily on market sentiment. The fresh wave of institutional demand has helped stabilize Bitcoin’s price, which is currently trading around $114,500.
Government Shutdown: Demand to Grow for Alternatives?
The renewed momentum comes as the US federal government reportedly entered a shutdown on Oct. 1 after a deadlock in budget negotiations between President Donald Trump and Democrats.
The failure to pass a funding package means roughly 750,000 federal employees face furloughs or delayed pay, while non-essential government services have been suspended.
Unions and policy experts warn the financial strain on workers could quickly mirror the difficulties seen during the 35-day shutdown of 2018–2019. Markets, too, are feeling the ripple effects.
Interestingly, analysts believe that this political dysfunction could boost the demand for alternative stores of value like Bitcoin and gold.
Gold prices have already climbed to new highs, while the US dollar has softened. Bitcoin, often described as “digital gold,” appears to be benefiting from this safe-haven narrative. Analyst Ted pointed out Bitcoin’s strong correlation with gold, often with an eight-week delay.
Since gold has recently touched new highs, he believes Bitcoin could soon follow. “Corrections may occur,” he wrote, “but the overall trend for Q4 looks very promising.”
$BTC has been highly correlated to Gold with an 8-week lag.
Right now, Gold is hitting new highs, which means Bitcoin will do this next.
Maybe we could see another correction, but overall Q4 will be big for Bitcoin. pic.twitter.com/RkOTTgsfG3
— Ted (@TedPillows) September 30, 2025
Analysts Predict a Bullish Q4 for Bitcoin
Bitcoin’s price briefly dipped to around $109,000 last week, but quickly rebounded amid strong ETF inflows and institutional accumulation. While volatility is expected in the short-term, experts suggest the prolonged shutdown may strengthen Bitcoin price for Q4 2025.
Crypto analyst Cas Abbe suggested that October could lead Bitcoin to a new all-time high.
Bitcoin ETFs buying have accelerated now.
In just 2 days, ETFs have bought $947 million in $BTC.
This has helped push BTC above $114K and is now looking strong.
It seems like BTC wants a new ATH in October. pic.twitter.com/kDEO2pgieA
— Cas Abbé (@cas_abbe) October 1, 2025
Another market watcher, known as Captain Faibik, noted that BTC has been trading within a descending parallel channel since August. He expects a potential price breakout in the next two months.
$BTC is getting Ready for Another Bullish Rally..🚀
I think October & November are gonna be Bullish Months..📈
Before the Breakout, if we get a dip, that would be a very good Opportunity.. 😉#Crypto #Bitcoin #BTCUSD pic.twitter.com/Kt3UTl1VLv
— Captain Faibik 🐺 (@CryptoFaibik) October 1, 2025
However, the analyst has warned of possible short-term dips that could offer attractive entry points for traders looking to buy top crypto coins.
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