Bitcoin jumped 1.8% on Wednesday to $116,283 even as most other risk assets fell, following the US government shutdown after the Senate failed to pass a funding bill. In the last 24 hours, the cryptocurrency has gained about 3%.
The rise reflects Bitcoin’s increasingly perceived role as a store of value during political uncertainty, just as gold has also hit a new high.
The government shutdown began at midnight after a Senate vote failed, with Democrats pushing for a funding package that includes an extension of Obamacare tax credits. President Donald Trump has threatened to cut government benefits if a deal is not reached.
The US stock market is expected to open weak, with investors turning to hedge assets such as gold and Bitcoin. The shift shows Bitcoin is increasingly being seen as an alternative investment during a crisis.
So far this year, Bitcoin has risen about 25%, driven by acceptance by large financial institutions on Wall Street and global investors who are increasingly seeing it as a legitimate part of their investment portfolios.
