Recent comments from crypto educator CryptoBusy suggest that a US government shutdown could position Bitcoin as a “hedge against economic uncertainty” for investors.
On October 1, the BBC reported that the US government averted a federal shutdown by reaching a short-term funding agreement. President Biden signed the bill into law, providing financing through November 17.
CryptoBusy tweeted that during a shutdown, investors may flock to Bitcoin as a “safe haven asset” against inflation. With agencies inactive, cryptocurrency could also see temporarily fewer regulations.
“This also highlights the instability of traditional fiat currencies, boosting interest in decentralized cryptos like BTC,” he noted, emphasizing the vulnerability of government-backed money.
In late September, as a US shutdown appeared imminent, Bitcoin and cryptocurrencies gained value. Within 24 hours, Bitcoin exceeded $27,000 after lingering near $26,000 for over a month. Currently, the leading crypto trades around $27,516.
When Biden announced the cancellation of $127 billion in student debt, crypto trader Mike Alfred implied a connection between US policies and Bitcoin prices.
The 2021 COVID-19 stimulus of $1.9 trillion boosted crypto, helping the market reach a $1 trillion capitalization and Bitcoin hit an all-time high of around $65,000.
Periods of government uncertainty seem to steer investors toward decentralized options like Bitcoin as safe-haven assets.
