Bitcoin Nears Record High, Echoing 'Digital Gold' Sentiment Amid Economic Uncertainty

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Bitcoin (CRYPTO BTC) is on the brink of reaching its all-time high, reflecting a possible shift in investor sentiment towards treating the cryptocurrency as a safe-haven asset similar to gold in the face of persistent economic uncertainty.

Bitcoin experienced a rally of approximately 1.6% on Friday, trading at over $122,000, just below its record high of around $124,000 set in August.

This rally is concurrent with the ongoing U.S. government shutdown, which is causing widespread economic uncertainty.

Spot gold advanced 0.5% in early Friday trading to $3,876.55 per ounce, lifting its weekly gain to over 2%. Gold futures have rallied more than 46% so far this year, reflecting sustained momentum in the precious metals market.

As the shutdown’s negative impacts become more pronounced, experts including Treasury Secretary Scott Bessent have cautioned about potential damage to economic growth. Standard Chartered forecasts Bitcoin will soon hit a new high, potentially reaching $135,000.

Meanwhile, according to the Benzinga Pro, the Dow Jones Industrial Average rose 310 points, or 0.7%, and the S&P 500 ticked up 0.1% on Friday.

Also Read: Could Bitcoin Really Hit $280,000 in 2025? This Legendary Trader Thinks So

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The surge in Bitcoin’s value amidst economic uncertainty underscores its growing reputation as a ‘digital gold’. This shift in perception is significant as it suggests that investors are increasingly viewing Bitcoin as a reliable store of value in turbulent times.

The correlation between Bitcoin and gold prices, as noted by Citi's Alex Saunders during a conversation on CNBC, further reinforces this sentiment.

The ongoing U.S. government shutdown and its potential impact on economic growth could continue to fuel this trend, as investors seek safe-haven assets.

The prediction by Standard Chartered of Bitcoin potentially reaching $135,000 suggests that this trend is likely to continue in the near future.

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