The United States’ prolonged budget deadlock has sparked renewed demand for alternative assets, lifting Bitcoin and gold to historic levels, Bloomberg reported.

With federal operations partially suspended and the release of economic data halted, investors have sought refuge in assets viewed as insulated from political risk. The absence of the nonfarm payroll report on Friday — a key gauge of labour market health — further intensified the shift away from traditional markets.

Bitcoin, the largest cryptocurrency by market value, advanced to $125,689 over the weekend before easing to about $123,700 in early Monday trading in Singapore. The digital token has now returned to levels last seen in mid-August, reflecting what analysts describe as a re-emergence of the “debasement trade,” in which investors move from the dollar into perceived stores of value.

JPMorgan analysts said the current pattern mirrors earlier periods when political dysfunction in Washington undermined confidence in the dollar.

Gold also benefited from the renewed caution, breaking past $3,900 to set another record high after months of steady gains. Ether held near $4,501, while XRP traded just below $3, showing limited reaction compared with Bitcoin’s strong advance.