Will Crypto Rally When the US Government Shutdown Ends?
The post Will Crypto Rally When the US Government Shutdown Ends? appeared on BitcoinEthereumNews.com.
Despite a worrying dip on Friday, Bitcoin has survived the $100,000 crash test. Now, attention turns to Washington. The longest US government shutdown in history has drained liquidity from financial markets — and by extension, from crypto. Analysts argue that when the fiscal gridlock ends, the same mechanism that pulled liquidity out will push it back in, setting the stage for a recovery. US Shutdown Standoff and Its Economic Impact The government shutdown, which began on October 1, 2025, entered its sixth week after Congress failed to pass new funding. Sponsored Sponsored The deadlock stems from disputes over healthcare subsidies and spending levels. Both parties are refusing to pass a “clean” budget bill. The US government shutdown has now lasted for 36 days, making it the longest on record. Some welfare payments, including those that allow low-income families to buy food, have been halted. The shutdown means more than a million government employees are not being paid. pic.twitter.com/fF4ORTrg6V — Al Jazeera English (@AJEnglish) November 5, 2025 The economic toll has been measurable. The Congressional Budget Office (CBO) estimates losses between $7 billion and $14 billion. In fact, the US GDP growth in Q4 is likely trimmed by up to two percentage points. Consumer sentiment is near record lows, air travel is disrupted due to air-traffic shortages, and state programs face funding stress. The prolonged cash freeze has become a significant drag on the economy. How Did the US Government Shutdown Impact Crypto? In financial terms, the shutdown has frozen hundreds of billions of dollars inside the Treasury General Account (TGA) — the government’s cash reserve. Every dollar parked there is a dollar not circulating in the financial system. Sponsored Sponsored Since the US debt ceiling was raised in July, the TGA balance has swelled above $850 billion, draining liquidity by…
Filed under: News - @ November 8, 2025 2:32 pm