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Crypto News Today: Crypto Markets Show Resilience Amid Looming US Government Shutdown
Bitcoin and Ethereum prices remained stable on Tuesday as Congress faced mounting pressure to pass a funding bill before the government shutdown deadline. At the time of writing, Bitcoin traded at $113,435 with no major change in 24 hours but a slight 0.4% rise in the past hour. Ethereum slipped 0.3% to $4,153, according to CoinGecko.
Prediction markets showed growing concern among traders. On Myriad, about 85% of users expected Bitcoin to post at least 48 red candles before Wednesday noon, a sharp increase from Monday’s even split. The shift reflected heightened worries over political gridlock and delayed US macroeconomic data.
Despite the caution, some market leaders remained optimistic. John Glover, Chief Investment Officer at Bitcoin lender Ledn, noted that digital asset dips during past Trump-era shutdowns were often viewed as buying opportunities. He highlighted that markets initially sold off but recovered quickly once the temporary funding disputes were resolved.
Shutdown History and Potential Market Impact
Government shutdowns are not a new phenomenon, but their effects on markets vary. Since the launch of Bitcoin in 2009, three shutdowns have occurred. A 13-day standoff in 2013 saw Bitcoin rise 10%, while shorter disputes in early 2018 had little effect. However, the 35-day shutdown in late 2018 coincided with a 10% decline in Bitcoin’s value, though the asset more than doubled a year later.
Equity markets have historically shown resilience. Data suggests the S&P 500 has risen 57% of the time during shutdowns, with average disruptions lasting eight days. Still, prolonged disputes tend to weigh on investor sentiment. The 2018-2019 shutdown caused the index to decline by 14%, although gains followed once stability was restored.
Gold has emerged as a standout performer in the current climate. Prices reached $3,833.37 per ounce, a record high and up 46.5% year-to-date, reinforcing its reputation as a safe-haven asset. By comparison, Bitcoin’s annual gains stood at 22.5%.
Outlook for Bitcoin and Broader Markets
Analysts warn that a shutdown starting October 1 could stall the release of key U.S. economic data, including jobs and inflation figures. These reports guide Federal Reserve policy, and their absence may heighten market volatility. Agencies such as the SEC and CFTC are also expected to scale back operations, delaying crypto-related regulatory decisions and ETF reviews.
Technical analysis revealed that Bitcoin was trading within a narrow range, between $113,600 support and $115,600 resistance. While the short-term outlook remained neutral, the medium-term trend indicated positive momentum, with support at $106,000 and resistance near $123,000.
Broader markets displayed cautious optimism. US equities gained slightly on Monday, supported by technology and semiconductor stocks. However, analysts cautioned that extended political gridlock could undermine the rally. Meanwhile, gold’s surge and a weaker dollar suggested investors were preparing for turbulence.
With the shutdown deadline looming, traders across markets are closely watching both congressional negotiations and regulatory updates, anticipating shifts that could shape risk sentiment in the weeks ahead.
