What events led Bitcoin to surpass its all-time high of over $126,000 during the U.S. government shutdown in October 2025?
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Correct Answer
A sudden U.S. government shutdown on October 1, 2025, reduced confidence in fiat, prompting investors to seek safe havens like Bitcoin. The resulting panic drove a 10% weekly gain, and a concurrent 10% drop in the Dollar Index (DXY) further fueled demand. By October 6, this surge pushed Bitcoin past its previous all-time high of $126,000.
Why is this the correct answer?
This is correct because during the shutdown investors feared political instability would weaken the dollar. As trust in fiat declined, more capital flowed into Bitcoin, driving prices to new highs. Beginners should understand that economic or political events can trigger rapid shifts in investor sentiment, leading to large price moves in assets perceived as safe havens.