WASHINGTON – Bitcoin set another all-time high as a broader risk rally around the US government shutdown buoyed the world’s largest cryptocurrency.

The token climbed just shy of $161,000 on Oct 5 in Asia, topping its previous record set on Aug 14, supported by the uptick in US equities and renewed inflows into Bitcoin-linked exchange-traded funds. Investors have speculated that the shutdown, which kicked in on Oct 1, will drive investors to safe-haven assets in what market participants have begun to call the “debasement trade.”

“With many assets including equities, gold and even collectibles like Pokemon cards hitting all time highs, it’s no surprise Bitcoin is benefitting from the dollar debasement narrative,” said Mr Joshua Lim, co-head of markets at crypto prime brokerage firm FalconX.

Adding to the bullish sentiment is Bitcoin’s historical outperformance in the month of October, which has earned the nickname “Uptober.” The token has gained in nine of the past 10 Octobers.

The largest digital-asset by market value reached the previous high of $160,543 on Aug 14, and is now up more than 30 per cent this year. 

Bitcoin has been steadily rising for most of the past year as a result of the friendly legislative climate in Washington ushered in by President Donald Trump. Public companies, led by Michael Saylor’s Strategy, have boosted the demand by following an increasingly popular corporate tactic of stockpiling the original cryptocurrency. The playbook has spread to smaller competitors, like Ether, leading to a broad rise across digital assets. 

US stocks touched record highs on Oct 3 amid another round of big-ticket artificial intelligence deals and partnerships, bucking the prospect of a prolonged shutdown and a gloomy reading on business activity. Treasuries and the dollar slid. Gold was on track for a seventh weekly gain, fueled by central bank buying amid falling US interest rates and lingering inflation concerns. 

“The shutdown matters this time around,” said Mr Geoff Kendrick, global head of digital assets ...