Bitcoin and Ethereum have surged in early October, marking significant gains that are propelling the broader cryptocurrency market upward. Bitcoin has broken the $121,000 threshold, while Ethereum has surpassed $4,500. This positive momentum extends to other major cryptocurrencies, with BNB seeing a notable daily increase.
Market Rebound and Investor Sentiment
The cryptocurrency market is experiencing a robust upturn, with Bitcoin and Ethereum showing weekly gains exceeding 10% and 15%, respectively. This surge is accompanied by an increase in liquidation volumes for futures contracts, predominantly affecting short positions, signaling a shift in market sentiment. The Crypto Fear & Greed Index has jumped 15 points, indicating a move from apprehension towards a more bullish outlook and a greater inclination among investors to engage in buying activities.
Macroeconomic Factors Driving Growth
Market analysts attribute the current market dynamism to the ongoing U.S. government shutdown, which began on October 1, 2025. While the shutdown initially caused a downturn across various asset classes, including crypto, stocks, and gold, these markets have since recovered and are now trending upward. This suggests that investors are perceiving the shutdown as a catalyst for strategic asset allocation rather than a prolonged negative event.
John Haar, Managing Director at Swan Bitcoin, commented on this phenomenon, noting that Bitcoin is increasingly recognized as a liquid, non-sovereign reserve asset amidst rising global debt and pressure on fiat currencies. He suggests that this shift from speculative trading to strategic investment is likely to drive prices higher.
Broader Market Trends
The upward movement is not confined to cryptocurrencies. The S&P 500 index has climbed 1.5% over the past week, and gold prices have risen by 3%. Concurrently, the yield on three-month U.S. Treasury bills has hit a new low since October 2022, indicating a broader reallocation of capital away from traditional safe-haven assets toward riskier, potentially higher-yielding investments. Historically, October has often been a positive month for the cryptocurrency market, further supporting the current optimistic outlook.
Blockchain developer and writer, Daniel combines hands-on coding experience with accessible storytelling. He holds multiple blockchain certifications and authors technical explainers, protocol deep-dives, and developer tutorials to help readers navigate the intersection of code and finance.