1. Bitcoin rose 1.2% to $124,645, gaining 8.7% in seven days. 2. Government shutdown concerns drive crypto and gold price increases. 3. S&P 500 futures up 0.3%, indicating a bullish market trend. 4. Liquidity issues may distort Bitcoin's price movement just now. 5. Investors are seeking safe alternatives amid political uncertainties.
Historically, periods of government instability lead to increased investment in SPY and related stocks. For instance, during previous shutdowns, SPY’s performance showed resilience as investors shifted towards equities perceived as safe.
The political environment and implications for fiat currencies can indirectly affect SPY's attractiveness as a stable investment. As inflation and fiat concerns grow, investors may favor SPY due to perceived stability over cryptocurrencies.
Current market reactions are likely to be influenced quickly by political actions, as observed during prior shutdowns, which typically see immediate effects on market sentiment and investor behavior.