Washington’s dysfunction is proving a tailwind for Bitcoin. The latest US government shutdown - still in force at time of writing on Thursday morning - has revived the cryptocurrency’s role as a hedge against political risk, with investors seeking shelter from eroding confidence in the dollar and the nation’s fiscal management.
Each day that federal agencies limp along without funding, Bitcoin looks less like a fringe speculation and more like a structural alternative.
The immediate backdrop is familiar. Hundreds of thousands of federal employees face missed paycheques, agencies are shuttered, and markets are deprived of economic data releases that usually help anchor expectations. For many investors, the absence of functioning institutions only reinforces the case for assets that operate beyond politics. Bitcoin, with its predetermined supply and decentralised architecture, is one such outlet.
Gold is also gaining, but Bitcoin’s ascent reflects a distinct narrative. Unlike bullion, it offers portability across borders, seamless digital settlement, and an emerging infrastructure of regulated funds, custodians and listed companies holding it on balance sheet.
The combination of structural demand and institutional adoption is lifting Bitcoin at the same time Washington is floundering. Spot ETFs are pulling in steady inflows, and corporate treasuries are proving more willing to park capital in the token.
What does this mean for the US dollar and gold?
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