Bitcoin Falls To $101k As Stocks, Gold Rally Ahead Of Vote To End...

Bitcoin fell to weekly lows at $101,300 as US equities and gold rallied ahead of the key vote to end the US government shutdown, signaling a shift in investor sentiment to traditional assets.

US stock markets soared on Wednesday as investors anticipated a US House of Representative vote on a bill to end the government shutdown. Bitcoin (BTC), on the other hand, fell from an intraday high of $105,300 to a weekly low near $101,200, marking a 3.4% decline.

Bitcoin dropped 3.4% amid renewed flows into equities and precious metals.

The DOW gained 423 points, hitting a fresh intraday high ahead of the US shutdown vote in the US House of Representatives.

The Dow Jones Industrial Average rose 0.9%, supported by strong performances from Goldman Sachs, JPMorgan Chase and American Express. The S&P 500 edged up 0.1%, while the Nasdaq Composite slipped 0.3%, reflecting modest weakness.

Meanwhile, gold climbed to around $4,180 and silver rose above $53, boosted by safe-haven demand and anticipation of resumed government data releases once the shutdown ends.

The sharp decline in Bitcoin is accompanied by a broader shift in risk assets. As the shutdown vote approaches, investors may be favoring assets with clearer exposure to economic policies and credit flows. The rally in precious metals reflected both safe-haven demand and expectations of a potential policy pivot by the Federal Reserve amid less-disrupted economic data flows.

Meanwhile, Bitcoin’s decline may reflect continued profit-taking following a minor rally on Wednesday, and potentially lower institutional flows into cryptocurrencies compared to more traditional vehicles.

The market appears to be tilting toward the conventional end of the risk spectrum as the shutdown risk recedes, leaving Bitcoin standing aside the primary rotation in governance- and policy-sensitive assets.

Related: Bitcoin price boom isn’t guaranteed after US shutdown: Here’s why

Source: CoinTelegraph