The price of Bitcoin remained stable on Saturday, hitting a high of $70,000 for the first time in days, even as a partial government shutdown began in the United States.
Summary
- Bitcoin price rose to $70,000 as the recent rally continued.
- The US government experienced a new partial shutdown.
- Technical analysis suggests that Bitcoin price may recover.
Bitcoin (btc) rose to $70,000, substantially higher than the year-to-date low of $60,000. The rally coincided with Friday’s stock market rally and the broader crypto market rally.
The Bitcoin price action came as a partial government shutdown began in the US. This shutdown is now affecting the Department of Homeland Security, with key departments like the TSA and the Coast Guard being affected.
The main problem is that Democrats have insisted that they will not approve any funding unless reforms to ICE are implemented after the shooting deaths of Renee Good and Alex Pretti in Minneapolis.
Still, Bitcoin price is rarely affected by key events like government shutdowns. For example, the currency jumped to a record high in October last year when the United States experienced its longest shutdown on record.
The main catalyst for the current Bitcoin price recovery is the view that the Federal Reserve could deliver more interest rate cuts than expected this year. Polymarket data shows that the odds of three or four rate cuts have increased in recent days.
These odds increased after the US released the latest consumer inflation and nonfarm payroll data. A report on Wednesday showed the economy added more than 130,000 jobs in January, while the unemployment rate fell to 4.3%.
Another report released last Friday showed that the general consumer price index fell to 2.4% in January from 2.7% previously. Core inflation, which excludes volatile food and energy prices, remained at 2.5%.
Bitcoin price also rose after investors cautiously bought spot BTC ETFs. Data compiled by SoSoValue shows that spot ETFs added more than $15 million in assets on Friday.
Bitcoin price technical analysis.
The daily chart shows that BTC price recovered to $70,000 from the year-to-date low of $60,000. The two lines of the percentage price oscillator are about to have a bullish crossover. Furthermore, the relative strength index has moved from the oversold level to the current 37.
Therefore, there is a chance that the coin could continue rising as bulls target the 50-day moving average at $81,000. On the other hand, a drop below the year-to-date low of $60,000 will invalidate the bullish outlook.
