Nigel Green, CEO of deVere Group, predicts that the price of Bitcoin will continue its upward momentum as the US government shutdown drags on. This surge is driven by the erosion of confidence in traditional financial structures and the government system due to Congress’s failure to secure a funding deal.
Why Bitcoin Rises During Political Crisis
- Erosion of System Confidence: When government institutions fail to function properly, confidence in the system erodes. Investors are moving capital into an asset that is not dependent on politicians reaching an agreement.
- Digital Safe Haven Alternative: Bitcoin is gaining unique appeal as a digital alternative to traditional safe havens like gold, which are also rising.
- Independence and Scarcity: BTC is borderless, scarce (fixed supply), and operates outside the structures that are currently paralyzed. It’s being recognized as a store of value when old anchors are under pressure.
- Dollar Dysfunction: Repeated shutdowns undermine confidence in US fiscal management, chipping away at the dollar’s safe-haven status and making Bitcoin a clear beneficiary as investors seek alternatives.
Factors Reinforcing the Rally
- Structural Demand: The price rise is happening while institutional and corporate adoption continues to expand. Spot Bitcoin funds are seeing sustained inflows, major financial players are integrating crypto, and listed companies are holding BTC on their balance sheets.
- Information Void: The delay of key economic data releases (like inflation or payroll figures) during a shutdown creates unease. Investors prefer assets not dependent on those numbers being published, a demand met by Bitcoin’s fixed supply and decentralized architecture.
- Global Legitimacy: Governments globally are watching the US crisis and some are already exploring digital assets as part of reserve diversification. This suggests that sovereign players are entering the conversation, adding global legitimacy to the rally.
Conclusion
Nigel Green concludes that Bitcoin is maturing, moving beyond speculation to become a hedge against fiscal instability, monetary mismanagement, and systemic risks. While volatility will persist, any pullbacks are viewed by long-term conviction investors as opportunities to buy the dips.
