Bitcoin Price Shows Signs of Bullish Sentiment as US Government Nears Shutdown
The Bitcoin price is displaying early signs of a bullish sentiment as the US government approaches the risk of a shutdown. The deadline to fund federal agencies is fast approaching, and it seems that the US Congress will miss it.
Shutdown Effects
While Bitcoin has been trading sideways for most of September 2023, the news of a potential US government shutdown could have ripple effects in the banking industry. This could lead to a situation similar to the March 2023 regional banking crisis, which negatively impacted Bitcoin’s price. During that time, Bitcoin showed a clear negative correlation to falling banking stocks.
Bitcoin Rally To Begin?
Despite macroeconomic events, historical data shows that the Bitcoin halving event has been highly rewarding for the cryptocurrency. Leading up to the halving, there is typically a downward trend for BTC, followed by a sharp upward curve after the event. Crypto trader Rekt Capital believes that within the next five months, traders may have one final opportunity to take a position around $20,000.
In the short term, Bitcoin experienced a 1.5% spike on Friday, fueling speculation that fears of a government shutdown could trigger a bull run in the coming weeks.
Hot Take: Bullish Momentum Ahead for Bitcoin?
As the US government faces the risk of a shutdown, Bitcoin’s price is showing signs of bullish sentiment. The potential ripple effects in the banking industry and historical trends surrounding halving events suggest that there may be a rally on the horizon for Bitcoin. Despite the current sideways movement, traders could potentially take advantage of this last chance to position themselves around $20,000 in the next five months. Keep an eye on Bitcoin’s price in the coming weeks as the government shutdown situation unfolds.
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