Most cryptocurrencies rose during Thursday’s trading as investors in the market ignored the ongoing US government shutdown and its potential impact on the world’s largest economy.

As a result of the continuing shutdown in the United States, no economic data were released today, most notably the weekly jobless claims figures.

Market expectations also point to the possibility that the US government may delay the release of the monthly jobs report, scheduled for tomorrow, to a later date.

The US federal government shutdown came into effect on Wednesday, raising fears of a prolonged negative impact on the economy.

Fitch commented on the government shutdown, saying it will not affect the United States’ sovereign credit rating in the near term, but it will have a negative impact on the economy.

Meanwhile, Dallas Fed President Lorie Logan stated that the Fed’s interest rate cut in September was an appropriate step to hedge against any sharp deterioration in the labor market, but she called for caution in any further cuts, noting that inflation risks outweigh the risk of labor market weakness.

Ripple

In trading, Ripple jumped by 4.4% at 20:38 GMT on CoinMarketCap to $3.08.

Gold prices declined during Thursday’s trading amid a rise in the US dollar against most major currencies following remarks from a Federal Reserve official.

This comes as the US government shutdown continues, which prevented the release of key economic data today, most notably the weekly jobless claims figures.

Market expectations also point to the possibility that the US government may delay the release of the monthly jobs report, scheduled for tomorrow, to a later date.

The US federal government shutdown came into effect on Wednesday, raising fears of a prolonged negative impact on the economy.

Fitch commented on the government shutdown, saying it will not affect the United States’ sovereign credit rating in the near term, but will have a negative effect on the economy.

Meanwhile, Dallas Fed President Lorie Logan stated that the Fed’s interest rate cut in September was an appropriate step to hedge against any sharp deterioration in the labor market, but she called for caution in any further cuts, noting that inflation risks outweigh the risk of labor market weakness.

At 20:08 GMT, the US dollar index rose by 0.1% to 97.8 points, recording a high of 98.1 points and a low of 97.5 points.

In trading, spot gold fell by 0.4% at 20:09 GMT to $3,881.9 an ounce.

The International Energy Agency (IEA) revealed that electricity consumption in the Middle East and North Africa (MENA) region has tripled since 2000, making it one of the fastest-growing regions in global energy demand. The agency explained that this accelerated growth was driven by rising populations and higher income levels, with air conditioning accounting for nearly half of peak demand.

The agency expects the region to see an additional 50% increase in electricity demand by 2035, based on current policies, supported by urban expansion, industrial growth, and rapid population increases.

Despite the dominance of oil and gas in the region’s energy mix, accounting for more than 90% of total generation, the coming stage will witness a major transformation. Oil’s contribution to electricity generation is expected to decline to just 5% by 2035, down from 20% currently, while natural gas, renewable energy, and nuclear will lead the next phase of growth. The agency estimates that solar capacity will expand tenfold to reach 200 gigawatts by 2035, with the share of renewable energy rising to 25% of the mix compared to 6% currently, while nuclear energy will record significant growth in the UAE, Egypt, and Iran.

Fatih Birol, Executive Director of the IEA, said: “Electricity demand is rising rapidly in the Middle East and North Africa, driven by growing needs for cooling and water desalination in a region suffering from heat and water scarcity, in parallel with population and economic growth. Since the start of the century, the region has recorded the third-largest global growth in electricity consumption after China and India. To meet this demand, generation capacity is set to expand by more than 300 gigawatts over the next decade, equivalent to three times Saudi Arabia’s current capacity.”

Natural gas is expected to account for half of the region’s energy mix by 2035, amid major investments from national oil companies such as Saudi Aramco, ADNOC, and QatarEnergy, which are channeling billions of dollars to expand their share in the liquefied natural gas (LNG) market.

Gulf producers aim to double their LNG capacity over the next decade, with gas serving as a transitional fuel and a bridge toward clean energy sources, as well as a means of maximizing returns and diversifying revenues away from crude oil.

Okan Kose, Managing Director at Accenture, told Bloomberg: “LNG still appears to be the best bet among all hydrocarbon commodities, as investments and trade in it deliver profit margins that are nearly unprecedented compared with any other commodity.”

But the agency warned that some countries in the region will be unable to meet growing demand. Countries such as Iraq, Syria, Yemen, Lebanon, and Sudan have faced repeated electricity crises. Iraq, despite its oil wealth, still suffers from chronic outages that cost it around $100 billion between 2014 and 2020.

Lebanon, meanwhile, has relied for years on polluting private generators and illicit fuel trade to cover shortages. In Syria, generation capacity has fallen to less than 40% of pre-war levels. In Libya, production capacity has dropped by half due to civil conflict.

Nevertheless, the region holds enormous opportunities thanks to abundant renewable resources. For example, on July 15, 2024, Yemen inaugurated the Aden solar power plant with a capacity of 120 megawatts, funded by the UAE.

The plant supplies electricity to between 150,000 and 170,000 homes, reducing reliance on fossil fuels. Solar currently represents around 10.4% of Yemen’s total electricity, and this share is expected to double by 2026 with the launch of the project’s second phase.

Bitcoin climbed on Thursday to its highest level in more than two months, coinciding with the official start of the US government shutdown.

The world’s largest cryptocurrency by market capitalization rose about 3.5% in the past 24 hours, briefly touching $119,455 (£88,516) before easing back to trade near $118,500. This marks Bitcoin’s strongest level since mid-August.

Other major cryptocurrencies also posted gains over the past day: Ethereum rose 5.5%, XRP gained 4%, and Solana advanced 6%.

The global cryptocurrency market cap reached $4.17 trillion today, up 4% within 24 hours. Bitcoin’s market dominance currently stands at 56.7%, while Ethereum holds 12.7%, underscoring Bitcoin’s continued position as the strongest asset in investor demand.

Government Shutdown and Its Market Impact

This surge coincided with the US government’s failure to reach a funding agreement, forcing federal agencies to close and resulting in temporary furloughs for around 750,000 workers at an estimated daily cost of $400 million.

The shutdown also delays the release of key economic data, including the highly anticipated nonfarm payrolls report due Friday, potentially altering monetary policy signals and shifting risk sentiment in markets.

Timothy Messer, head of research at BRN, said: “The US shutdown adds a new variable by removing key economic data and amplifying uncertainty. Options markets already reflect this fragility, as traders hedge against downside risks. At the same time, Bitcoin options remain relatively cheap compared with realized volatility.”

In other words, investors are paying for downside protection, but the cost of this insurance remains low relative to Bitcoin’s volatility, signaling a market in wait-and-see mode that leaves room for traders to speculate on big moves at low cost.

Gold and Cryptocurrencies in the Spotlight

Gold has also been a key beneficiary of mounting financial and political pressures in the US, ending September with a 12% monthly gain — its strongest advance since 2011. This reflects a broader investor shift toward tangible assets, as Fed officials continue to warn about inflation remaining “too high.”

New York Fed President John Williams reiterated that interest rate cuts remain conditional on incoming economic data, which may now face delays due to the shutdown.

Meanwhile, the cryptocurrency market sits between supportive inflows and cautious derivatives positioning. ETFs have provided momentum, with spot Bitcoin ETFs recording net inflows of $676 million on Wednesday, marking a third straight day of gains. Spot Ethereum ETFs also logged $80.79 million in inflows over the same period.

Is the Shutdown’s Impact Overstated?

Some analysts argue the shutdown’s market impact may be overstated. QCP Capital noted: “From a fiscal policy perspective, the US government shutdown should be a marginal market event, aside from delayed data and media noise. Essential services remain in place, wage compensation cushions income effects, and previous episodes did not derail risk assets. During the 35-day 2018–2019 shutdown, the S&P 500 rose about 10%. Given Bitcoin’s high correlation with equities, we view any pullbacks linked to the shutdown as buying opportunities, rather than chasing rallies.”

October: Historically a Strong Month for Bitcoin

Historically, October has been one of Bitcoin’s strongest months. Over the past 12 years, Bitcoin has posted gains in 10 Octobers, ranging from +10% to +40%. Seasonal patterns also tend to support Q4 overall, with Bitcoin rising in four of the last five fourth quarters.

CryptoQuant analyst Alex Adler Jr. noted that the current market setup shows Bitcoin in a “balance with upside potential” toward $130,000:

“The upper bound of this range is currently around $130,000, an area where short-term holders often take profits.”

With Bitcoin already pushing toward its two-month highs, seasonal historical factors and technical positioning suggest that the bullish momentum could continue through year-end.