Bitcoin hit a new record high on Sunday as investors flocked to safe-haven assets following the U.S. government shutdown. This trend, dubbed “devaluation trading,” has pushed both Bitcoin and gold prices to historic highs. BTC, which reached $125,689 over the weekend, saw a new peak for the first time since mid-August, according to data. The US government shutdown on October 1st sent investors looking to alternative assets to hedge against economic uncertainty. This also prevented the release of critical economic data such as nonfarm payrolls. Gold, meanwhile, reached an all-time high today, exceeding $3,900 per ounce. Alex Kuptsikevich, Chief Market Analyst at FxPro, noted that reduced liquidity over the weekend fueled price momentum: “A similar pattern was seen in July and August, with sharp increases occurring after renewed peaks at these levels.” Related News: Will Pro-Crypto Decisions in the US Be Reversed After Trump? Bitwise CEO Responds FalconX Research Director David Lawant stated that total open interest in Deribit and IBIT is approaching $80 billion, which means an increase of approximately 10 times compared to the beginning of 2024: “Options market dynamics are shaping spot price movements like never before.” BTC Markets analyst Rachael Lucas said that the next technical resistance level is $135,000, with the target at $150,000 given the ongoing momentum. However, she noted that increased leverage carries the risk of high volatility in the event of sudden pullbacks: Options markets are showing a strong upward trend. Over 60% of open interest is in call options, which reflects strong conviction but could trigger liquidation cycles if momentum falters. *This is not investment advice. Continue Reading: Bitcoin Options Data Shows Historical Movements: Here’s the Real Reason Behind BTC’s Rise
