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.
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.
