As the U.S. government slips deeper into shutdown, Bitcoin is pressing higher, riding a wave of investor unease and global uncertainty. Nigel Green, founder and CEO of the deVere Group, sees this extended political impasse as a catalyst for continued upward momentum in the world’s largest cryptocurrency.
Bitcoin has already carved out fresh gains. On Thursday, prices climbed past $120,000, a level not seen in several weeks. Earlier in the week, Bitcoin had broken above the $118,000 mark.
Green argues that this rise is no coincidence. “Bitcoin is gaining because Washington is failing,” he says. “When government institutions stop functioning properly, confidence in the system erodes. Investors are moving capital into an asset that is not dependent on politicians reaching an agreement.”
The consequences of the shutdown are already rippling across the economy and markets. Hundreds of thousands of federal employees face furloughs or delayed pay, and many agencies are operating on minimal staff.
In particular, financial regulators are being scaled back: the SEC will furlough more than 90% of its workforce, leaving only a skeleton crew to handle emergencies. That means IPOs, ETF approvals, and regulatory filings could slow or pause entirely.
Compounding the stress is the absence or delay of critical economic data, payrolls, inflation reports, and consumer spending figures, all of which typically serve as guideposts for markets. With them missing, investors may lean toward assets whose dynamics are less dependent on opaque data releases.
“When inflation reports or payroll figures are delayed, the information void creates unease. Investors want assets that are not dependent on those numbers being published,” Green observes.
The U.S. dollar, traditionally a beneficiary of safe‑haven flows in troubled times, is now under pressure. Repeated shutdowns and mounting fiscal concerns are eroding its appeal.
“Investors are seeking alternatives, and BTC is one of the clearest beneficiaries,” says Green.
Gold is also rallying, with record highs in gold prices underscoring the flight to traditional safe havens, even as crypto appeals gain strength.
Green emphasises that Bitcoin’s uniqueness lies in its borderless, scarce, and decentralised nature. It lives outside the political gridlock now freezing Washington.
Bitcoin surge: Structural demand meets political dysfunction
Green sees the current setup as more than a short‑term trade: it’s a moment where structural tailwinds for Bitcoin align with acute macro stress.
Across the past months, institutional and corporate adoption of Bitcoin has steadily expanded. Spot Bitcoin funds are seeing inflows, major financial players are weaving crypto into their offerings, and public companies are increasingly holding Bitcoin as part of their treasury strategy. That sustained demand, Green argues, provides a foundation beyond pure speculation.
In his view, Washington’s dysfunction is amplifying a trend already underway.
“Structural demand for Bitcoin is building at the same time that Washington is showing dysfunction … That combination is potent, and it’s why we believe the price will continue to climb during the shutdown.”
More broadly, he sees Bitcoin’s role evolving from a speculative asset to a hedge against fiscal instability, monetary mismanagement, and systemic risk.
Still, Green does not deny volatility. “We will see sharp moves both ways. But pullbacks are not signs of weakness. They are opportunities. Investors with long‑term conviction are buying dips, not abandoning positions.”
International dynamics add another layer. Sovereigns worldwide are watching the U.S. crisis unfold. Some are considering digital assets as part of reserve diversification.
“We’re moving into a new era where Bitcoin is not just about individual investors or institutions. Sovereigns are entering the conversation. This makes the current rally more significant, because it is happening against a backdrop of expanding global legitimacy,” says Green.
Markets are responding, for now, favourably. Bitcoin’s recent gains track with broader strength in equities, even amid shutdown jitters. But the shutdown is acting as a wild card: if it goes on for long, uncertainty will ripple further.
Missing economic updates, delayed regulatory actions, and dollar weakness could all intensify demand for alternatives.
That said, past shutdowns offer cautionary notes. In December 2018, during a prolonged impasse, Bitcoin fell roughly 9%, although that period came amid broader crypto dips. History is not deterministic, but it is a reminder that political risk can cut both ways.
As markets await any breakthrough in Congress, capital is recalibrating. For many observers, Bitcoin is emerging as the clearest refuge in an era when traditional anchors are failing.
Nigel Green’s concluding line encapsulates this moment: “Bitcoin is telling us that the old certainties are under strain, and capital is voting for alternatives.”