Bitcoin price today: jumps to a 7-wk high near $120k on ’Uptober’ cheer

Investing.com-- Bitcoin climbed to a seven-week high on Thursday, helped by ‘Uptober’ optimism, and expectations of a liquidity boost to crypto markets following a U.S. government shutdown.

The world’s largest cryptocurrency last traded 2.5% higher at $119,740 by 09:52 ET (13:52 GMT), reaching its highest level since mid-August.

Uptober optimism fuels rally

The term “Uptober” – a mix of “Up” and “October” – reflects a seasonal bias in crypto markets, where October has historically delivered strong performance. 

Traders increasingly treat the month as a psychological inflection point, and positive momentum early in the month tends to build confidence for further gains.

This year, the narrative received a tailwind after a wave of forced liquidations in late September left oversold conditions. 

Large investors called whales, and accumulation by institutional funds helped absorb some of that selling pressure earlier this week.

US shutdown could spark a positive liquidity impulse

Reports cited a key driver behind today’s jump was the expectation that a U.S. government shutdown might indirectly prompt a burst of liquidity into markets.

The federal government began a partial shutdown after Congress failed to pass a stopgap funding measure. 

The shutdown forces many federal operations to furlough staff, and delays or disruptions loom for major economic data releases — such as Friday’s employment figures, which the Federal Reserve uses to guide interest-rate policy.

With key data delayed or suppressed, the Fed may lean more heavily on forward guidance or signaling, and investors might expect the central bank to ease more aggressively once clarity returns. 

Also, the impulse of money may spill over into assets where markets are still functioning, with Bitcoin often in the crosshairs.

Citi lifts Ether outlook, trims Bitcoin target on shifting flows

Citigroup raised its year-end outlook for ether while slightly lowering its forecast for Bitcoin, pointing to shifting investor flows and mixed macroeconomic signals, according to a note seen by Reuters. 

The bank now expects Bitcoin to reach $133,000 by year-end, about 12% above current levels near $118,747, and Ether to hit $4,500, a roughly 3% gain from $4,375.

Looking ahead 12 months, Citi projects $181,000 for Bitcoin and $5,440 for Ether.

Bitcoin’s downgrade reflects “offsetting macro factors including a stronger dollar and weaker gold prices,” though Citi stressed its “digital gold” narrative remains intact and should continue to draw incremental flows.

Ether’s target was revised higher, supported by its sharp summer rally and increased buying from institutional investors and financial advisors. Citi expects the token to finish 2025 modestly higher, buoyed by inflows from ETFs and digital asset treasuries.

The bank’s base case assumes $7.5 billion in year-end inflows to bitcoin, with a more bullish scenario tied to stronger equity markets and demand. For Ether, upside potential is linked to adoption trends and yield opportunities from staking and decentralized finance.

On the downside, Citi warned bitcoin could drop to $83,000 in a recessionary environment, while ether’s risks are less predictable due to uncertainty around network activity and value capture.

Crypto price today: altcoins jump, DOGE up 5% 

Most altcoins also saw sharp gains, tracking the rally in the world’s largest cryptocurrency.

World no.2 crypto Ethereum jumped 2.7% to $4,404.34.

World no. 3 crypto XRP added 1.5% to $2.98.

Solana climbed nearly 4%, while Cardano rose 1.8%, and Polygon gained 2.7%.

Among meme tokens, Dogecoin advanced nearly 5%, while $TRUMP rose over 2%.

(Ayushman Ojha contributed to this report.)