Analysis: US shutdown fuels BTC rally on hopes of expanded liquidity

The U.S. government shutdown has fueled expectations of expanded liquidity, pushing Bitcoin to its highest price in over two months, CoinDesk reported. Major altcoins including Ethereum (ETH), XRP, Solana (SOL), and Dogecoin (DOGE) also rose in tandem, with gains of between 4% and 7%. Matt Mena, a research strategist at 21Shares, suggested that if the unemployment data scheduled for Friday is delayed on top of weak ADP employment figures released during the shutdown, it increases the likelihood that the Federal Reserve will implement further interest rate cuts. He projected that Bitcoin could see additional gains if there are a total of 50 basis points in cuts by the end of the year, along with signals of easing quantitative tightening.