Investors predicted to flock to Bitcoin amid US govt shutdown

The chief executive of global financial advisory deVere Group, Nigel Green, has taken the initiative and predicted investors will further pour into assets whose performance is independent of government activity, such as Bitcoin, amid the US government shutdown.

The price of the cryptocurrency crept higher as the US government failed to resolve a federal budget dispute prior to the deadline, before entering the shutdown as of Wednesday 1 October (EDT time in the US).

“Bitcoin is gaining because Washington is failing,” Green said.

“When government institutions stop functioning properly, confidence in the system erodes. Investors are moving capital into an asset that is not dependent on politicians reaching agreement.

“Traditional safe havens like gold are rising, but Bitcoin is showing its unique appeal as a digital alternative.

“It’s borderless, scarce, and operates outside the same structures that are now paralysed. It’s being recognised as a store of value when the old anchors are under pressure.”

According to Green, the shutdown, fuelling market uncertainty, has effectively changed the course of Bitcoin’s “role” beyond just “speculation” and now as a robust “hedge” option. This sentiment is supported by elevated institutional adoption of the digital asset, at the same time as investors lose confidence in the US dollar as “repeated shutdowns undermine confidence in US fiscal management”.

“Structural demand for Bitcoin is building at the same time that Washington is showing dysfunction,” he said.

“The combination is potent and it’s why we believe the price will continue to climb during the shutdown.

“The dollar is still the world’s reserve currency, but its safe-haven status is being chipped away by political gridlock and long-term debt concerns. Investors are seeking alternatives, and Bitcoin is one of the clearest beneficiaries.

“Bitcoin is maturing. Volatility remains, but so does conviction. Every time there is dysfunction in Washington or monetary uncertainty, more people understand its value proposition. This trend will only accelerate as this shutdown drags on.”

Green also highlighted how the temporary pause as a result of the shutdown to key economic data releases could further push investors into assets untied to government and policy movements and with “clear, predictable supply dynamics”.

“When inflation reports or payroll figures are delayed, the information void creates unease. Investors want assets that are not dependent on those numbers being published,” he said.

“Bitcoin, with its fixed supply and decentralised architecture, meets that demand.

“We’re moving into a new era where Bitcoin is not just about individual investors or institutions. Sovereigns are entering the conversation. This makes the current rally more significant, because it is happening against a backdrop of expanding global legitimacy.”

Green said he expects volatility to remain for some time.

“We will see sharp moves both ways. But pullbacks are not signs of weakness. They are opportunities. Investors with long-term conviction are buying dips, not abandoning positions,” he said.

“Bitcoin is telling us that the old certainties are under strain, and capital is voting for alternatives.”