Bitcoin ticked higher on Wednesday while most other risk assets fell after U.S. lawmakers failed to reach a government funding agreement, leading to a shutdown.
The move showed the evolving view of the cryptocurrency to a store of value during dysfunctional geopolitical times, not unlike gold, which rose to a record on Wednesday.
The flagship cryptocurrency traded 1.8% higher on the day at $116,283 as of 6:53 a.m. ET. Over the past 24 hours, it’s up around 3%.
The U.S. government shut down at midnight after a Senate bill to keep the government funded did not garner enough votes to pass. This comes as Democrats led by Sen. Chuck Schumer and Rep. Hakeem Jeffries push for such a measure also extend enhanced Obamacare tax credits.
Bitcoin 5-day chart
President Donald Trump, meanwhile, has threatened government benefit cuts for “large numbers of people” if an agreement isn’t reached soon.
Stock futures pointed to a downbeat open on Wednesday as traders assessed the ramifications of a government shutdown, with Wall Street perhaps looking to other assets for safety — including bitcoin. Gold also caught a bid, hitting a fresh all-time high.
Bitcoin is up about 25% this year, rising as more Wall Street institutions embrace the cryptocurrency and global investors begin to view it as a reputable portfolio allocation and not just a quick trading vehicle.
