Government Shutdown Threatens Crypto's Big Picture as It Stretches to Second-Longest

💡 DMK Insight

The federal government shutdown is looming, and while it hasn’t hit crypto hard yet, the longer it drags on, the more uncertainty it creates for investors. Traders need to keep an eye on how this political stalemate could affect regulatory clarity in the digital assets space. If the shutdown persists, we might see a slowdown in institutional interest, which could lead to increased volatility in major coins like BTC and ETH. Historically, prolonged government inaction has led to risk-off sentiment, pushing traders to liquidate positions in anticipation of potential market disruptions. Watch for any shifts in trading volume or sentiment indicators over the coming weeks, as these could signal a broader market reaction. The flip side is that if the government resolves its issues quickly, we might see a rebound in confidence, potentially driving prices higher. For now, keep an eye on key support levels—if BTC holds above $60,000, it could indicate resilience, while a drop below that could trigger further selling pressure.