Bitcoin price traded near $118,500 on Thursday as a U.S. government shutdown boosted rate-cut odds, the dollar eased, and a visible short squeeze accelerated across derivatives venues.

Gold printed fresh record highs around $3,895 per ounce as rate-cut pricing firmed and the dollar index hovered near 97.6. These conditions historically align with stronger performance in bitcoin when real yields drift lower. According to Treasury market data, 10-year TIPS yields sat near 1.77 to 1.78 percent, reinforcing the macro impulse that coincided with the move.

The day’s jump followed a reset in positioning that cleared leverage into late September, leaving the tape sensitive to macro headlines and flow shocks. Last week saw $1.7 billion in crypto liquidations, a cleanout that typically reduces one-way convexity until a new catalyst arrives.

According to CoinGlass, liquidation heatmaps into the $118,000 to $120,000 zone showed dense short pockets ahead of the break, and once cleared, those clusters often act like step-ladders for continuation if spot demand persists.

Bitcoin is now just 4.8% away from its all-time high. Should the squeeze continue, we could see price discovery later in ‘Uptober.’

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Author: Liam ‘Akiba’ Wright