Bitcoin, Ethereum Slide Amid Record U.S. Government Shutdown
- Bitcoin and Ethereum decline amid prolonged U.S. government shutdown.
- Bitcoin falls below $101,000, Ethereum below $3,340.
- Market volatility and liquidity withdrawal prompt investor shift to stablecoins.
Bitcoin and Ethereum continue their decline as the ongoing U.S. government shutdown enters its record-breaking 36th day, causing market volatility and exacerbating liquidity concerns.
This prolonged shutdown disrupts market stability, pushing investors towards stablecoins, impacting key crypto legislation timelines, and highlighting vulnerabilities in both economic and regulatory frameworks.
The ongoing U.S. government shutdown has precipitated a sharp decline in Bitcoin and Ethereum prices. Over the last week, Bitcoin has fallen below $101,000, marking its lowest value in four months.
Market analysts, including CryptoOracle, predicted these shifts, highlighting liquidity withdrawal as a key factor. “The shutdown will break liquidity first, then fix it later,” stated CryptoOracle. The lingering shutdown continues to challenge the crypto market.
The financial sector faces immediate impacts, with $700 billion estimated to be withdrawn from market liquidity. Investors are pivoting to stablecoins and Treasuries for stability amid uncertainty.
The shutdown’s effect on legislative progress further complicates market recovery. According to Cody Carbone, CEO of Digital Chamber, critical crypto bills face delays, impacting the overall market outlook.
Historical shutdown precedents reveal similar patterns, with cryptocurrencies like BTC and ETH experiencing temporary declines. The potential for post-shutdown recovery remains closely watched by investors.
Insights into regulatory and technological consequences are ongoing, with Ashley Ebersole noting shifting regulator priorities. The shutdown’s extension adds layers of complexity to an already volatile market landscape.
