Bitcoin touches on the highest ever high amid US government closure, macro uncertainty

Bitcoin (BTC) set a new record on October 3rd, clearing the peak on August 14 at $123,731.21, resetting the ceiling for this cycle.

This move follows a steady October crushing accelerated as the macros line up.

The spot market tone heading into October was constructive. Bitcoin regained its $120,000 threshold on October 2nd as risk appetite improved amid the backdrop of US government closures.

The shutdown itself has proven to be an extra for Bitcoin as it has muddied key federal economic data, particularly monthly employment reports, policymakers and market visibility.

With dark official measurements, investors rely on weak private sector signals, increasing the likelihood of additional FRED mitigation on October 29th. This background usually supports risk assets like BTC and hard asset hedging.

Additionally, demand for Spot Bitcoin Exchange-Traded Funds (ETFS) has been re-accelerated, recording a net flow of $1.3 billion between October 1st and 2nd.

Demand for ETFs has helped to absorb supply and strengthen invasive behavior observed in recent weeks.

The macro is pulling in the same direction. The Federal Reserve cut 25 basis points on September 17, giving the market a high possibility of another cut this month, which usually eases its financial position in favor of risky assets and crypto.

The location of the options may support momentum. Last week’s record quarterly expiration reset risk, opening up room for the upside as open interest was restructured in the fourth quarter, and heavy call interest clustered between the $115,000-$125,000 strike.