The U.S. government has entered a shutdown, the first since 2019. A political stalemate over spending forced the halt, immediately furloughing thousands of workers and disrupting federal services due to the first US Government Shutdown since 2019 .
Causes of the US Government Shutdown
The US government shutdown started after lawmakers failed to pass a funding bill by the October 1 deadline. A standoff between the White House and Congressional Democrats over health care subsidies and Medicaid cuts led to the impasse.
The Senate blocked both Republican and Democratic stopgap proposals, making the US government shutdown unavoidable. The White House then officially directed agencies to begin their shutdown procedures.
Markets React to Political Uncertainty
#bitcoin surged from $108,650 → $117,220 as investors hedge against political turmoil.
The appearance of a bullish chart pattern, suggesting further gains were possible if the political crisis deepens but you should always remember that The shutdown has also delayed other critical legislation, including the CLARITY Act which benefit to our Crypto Sphere.
That’s why , I think that the shutdown like it has its benefits on the crypto adoption by US citizens , it also has some negative impact on the Total US market which will impact Bitcoin price on the long term due to the correlation created lately from the US Govt bitcoin adoption .
Historically, The October 2013 shutdown stretched for 16 days. From 10/01 to 10/17, BTC’s price increased 14% from $132.04 to $151.34.
But $BTC gains during a shutdown isn’t the rule. The longest ever shutdown was 12/22, 2018 through 01/.25, 2019. During that 35-day period, BTC fell 6% from $3,802.22 to $3,575.85 .
We cannot take the Historic values into consideration due to the evolution of the crypto market in the last 2 years in the US especially with the approval of the US spot bitcoin ETF , So no one will know the real impact on the long term .
What Happens Next?
The US government shutdown creates immediate economic and political risks. Federal employees face furloughs without pay, and public services from national parks to permitting face delays. The duration of the shutdown now depends on how quickly lawmakers can resolve their fundamental disagreements.
Now the big question: How long will Washington remain at a standstill?