Investor appetite for riskier assets grew this week, driving the total cryptocurrency market capitalization up by over 10%. Image by REDPIXEL.PL / Shutterstock
Bitcoin saw an 11% rise over the past week, reaching a trading value of approximately $122,000, fueled by heightened demand amid the US government shutdown and delayed economic data releases.
Investor appetite for riskier assets grew right after, driving the total cryptocurrency market capitalization up by over 10% to around $4.17 trillion, its highest level in two months.
Investors changing attitude
The cryptocurrency market surged 10.9% by the week's end, reaching its highest level since August 14. This growth was driven by the US government shutdown, which, coupled with postponed economic data releases, heightened investor uncertainty and shifted focus towards riskier assets.
Bitcoin rose 7% since the shutdown, reaching $122,305, a 2% increase over the past 24 hours. Other notable gains included Ethereum at $4,487.95 (up 11.71%), XRP at $3.00 (up 7%), Solana (up 13.44%), and Dogecoin (up 8.4%). BNB led the gains, surging 18% over the week.
Among the week’s underperformers, several cryptocurrencies posted notable declines, led by lesser-known tokens. Finance (MYX) dropped 36.73%, followed by Zcash (ZEC) with a 14.98% loss, while The Graph (GRT) and DoubleZero (2Z) fell 4.97% and 4.51%, respectively.
New safe havens
Analysts note that the anticipated interest rate cuts in 2026 are expected to strengthen the attractiveness of digital assets, positioning Bitcoin as a potential safe-haven alternative to traditional markets—despite persistent risks linked to sharp price volatility.
Bitcoin, the world’s largest cryptocurrency, has gained approximately 32.6% so far this year, supported by growing institutional adoption on Wall Street and a shifting perception among global investors who now view digital assets as a strategic component of diversified portfolios rather than merely instruments for short-term speculation.
Background
The US government entered a shutdown at midnight on Wednesday after the Senate failed to pass a funding bill, underscoring deep partisan divisions in Congress. Democrats, led by Senator Chuck Schumer and Representative Hakeem Jeffries, are pushing to approve the measure alongside an extension of the expanded Obamacare tax credits. Meanwhile, President Donald Trump has warned of potential cuts to government assistance programs affecting “large numbers of people” if an agreement is not reached promptly.
Translated by Imane Fawzy Nofal
Comments
Join Our Community
Sign up to share your thoughts, engage with others, and become part of our growing community.
No comments yet
Be the first to share your thoughts and start the conversation!