Bitcoin Jumps Above $120,000. Why the Crypto Rally Is Gaining Momentum.

Bitcoin is now trading about 3% off the record high it hit in August. (Michael M. Santiago/Getty Images)

Key Points

• Bitcoin increased by 1.3% over the past 24 hours, reaching $120,408, trading about 3% below its August record high.
• Ethereum rose 2%, Solana climbed 2.9%, and XRP gained 2.1% in the last 24 hours.
• Weaker-than-expected ADP private-sector jobs data supports a potential Federal Reserve interest rate cut, which could benefit riskier assets.

Bitcoin was rising on Friday, the latest sign that crypto investors aren’t worried about the government shutdown.

The world’s largest token was up 0.7% over the past 24 hours to $120,478, according to data from CoinDesk. It’s now trading about 3% off the record high it hit back in August.

Ethereum was up 2.2%, Solana climbed 2%, and XRP rose 1.7% over the past 24 hours, according to data from the crypto exchange Kraken.

Created with Highcharts 9.0.1Sources: CoinDesk (BTCUSD, SOLUSD); Kraken​(ETHUSD, XRPUSD)

Created with Highcharts 9.0.1SolanaEthereumBitcoinXRPOct.-6-4-2024681012%

Wall Street has been happy to ignore the shutdown so far, with the three major stock indexes closing at all-time highs Thursday.

One reason that investors are still feeling bullish is ADP private-sector jobs data, which came in weaker-than-expected, strengthening the case for the Federal Reserve to cut interest rates at its next policy meeting on Oct. 29.

Lower borrowing costs would be a boost for cryptos as well as equities. When bonds and savings accounts offer lower yields, it incentivizes investors to pile into riskier assets, in search of higher returns.

Write to George Glover at george.glover@dowjones.com