When the U.S. government shut down because Congress couldn't agree on the budget, traditional financial markets became nervous. Interestingly, the price of Bitcoin (BTC) reacted with a rise. Instead of getting scared, investors rushed towards the cryptocurrency.
🧐 Why Does Bitcoin Rise with Bad Political News?
The logic of Bitcoin is different from that of stocks or the dollar. There are three main reasons why instability in Washington benefits it:
1. The "Digital" Shelter 🛡️
Bitcoin was created to operate without depending on any government or central bank. When politics in the U.S. fails and the Government shuts down, people wonder: "Is it safe to have my money in a system that can fail like this?"
The Argument: Many investors see Bitcoin as a "safe haven asset" or the "digital gold". If the traditional system (the dollar and the government) becomes unstable, they look for a place where their money cannot be controlled, printed, or closed by a political decree. Political instability becomes a strength for the decentralization of Bitcoin.
2. Oversight Relaxes 🐢
During a Government shutdown, key regulatory agencies, such as the SEC (the body that oversees the markets), drastically reduce their activity. This means that:
Fewer Brakes: There is less oversight and less regulatory pressure in the short term. This is seen as a positive by the crypto community, as it gives them more freedom and reduces the fear of new prohibitions or strict rules.
3. The Push of "Pro-Crypto" Politics 🤝
In the current context, President Trump's administration has promised to make the U.S. a global leader in cryptocurrencies.
Long-Term Trust: This promise of a future with fewer regulations and more support for the crypto industry gives investors a background confidence. Even if there is chaos in Congress in the short term, the general sentiment in the White House is positive, which helps sustain the price.
💡 In short: The Government shutdown exposes the weaknesses of the traditional financial system (which relies on politics). The rise of Bitcoin is a signal that investors are seeking an alternative: a global and digital monetary system that continues to function regardless of what happens in the Capitol. They see chaos as a test of the need for decentralization.
