US Government Shutdown Reaches Day 35 – Bitcoin News: Will Market fluidity Seekers Drive BTC USD Upward In November?
Bearish sentiment is growing as Bitcoin faces challenges in maintaining its position above $104,000. As we move into early November,
Bitcoin
3.16%
Bitcoin
Bitcoin
Price
$103,739.25
3.16% /24h
Volume in 24h
$83.44B
Price 7d
is trading close to $103,960, marking its lowest point since late June 2025 and nearly 20% lower than its high of $126,500 in October. This recent downturn comes as the U.S. government shutdown reaches its 35th day, tying the ledger established in 2018–2019. Let’s delve into the latest updates regarding Bitcoin.
According to Polymarket, wagering odds indicate the shutdown might last beyond November 16, contributing to the uncertainty in global markets.
On another note, the U.S. Dollar Index (DXY) has surpassed 100 for the first time since August 1, indicating a heightened buyer interest for the dollar. An increasing DXY usually exerts downward pressure on risk assets like BTC and major technology stocks. The combination of a government shutdown and restricted liquidity has resulted in one of the toughest trading climates of the year — with BTC feeling the impact more acutely.
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Understanding the US Government Shutdown and Its Trading market Impact
A U.S. government shutdown occurs when Congress fails to pass the funding bills necessary for federal agencies to function normally. This leads to furloughs for government employees, halting of certain services, and prevents the Treasury from disbursing funds to departments or projects. The repercussions go beyond mere political turbulence: they directly impact liquidity and cash flow throughout the financial markets.
During a shutdown, the U.S. Treasury General Account (TGA) stops spending but continues to collect tax payments and issue debt. This effectively means cash is withdrawn from circulation. Current data indicate that the TGA balance has risen to around $965 billion, a surge of approximately $150 billion since October alone. This signifies money that is not circulating within the economy or financial markets.
(Source: FRED)
Simultaneously, the Reverse Repo Program (RRP) has escalated by around $20 billion this week as banks temporarily deposit funds with the Federal Reserve. These dynamics — the increasing TGA and RRP — together are sapping market fluidity from the market. This is one factor contributing to Bitcoin and other volatile assets struggling to gain traction.
The pressure is also visible in bank reserves, which have dwindled to the lower end of the levels the Fed labels as “ample.” This has led to tighter funding conditions, evidenced by rising SOFR spreads and unprecedented utilization of the Standing Repo Facility (SRF) — with banks borrowing over $10 billion recently, the highest amount since its advent in 2021.
While this doesn’t indicate financial panic, it exemplifies a short-term liquidity crunch keeping BTC stuck in a volatile range.
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Positive Announcement for BTC – A Market fluidity Outlook: Why BTC Could Rebound in Late November
Despite the current obstacles, the broader liquidity outlook is anticipated to enhance later this month. After the resolution of the government shutdown, the Treasury will restart its spending, depleting its massive TGA balance. This influx of hundreds of billions of dollars back into the financial system will enhance bank reserves and alleviate funding pressures.
Furthermore, as October’s “window dressing” period concludes, the RRP should begin to decline again, returning another $20 billion or more in cash to the crypto market. By early December, the Fed’s Quantitative Tightening (QT) initiative is also predicted to conclude, potentially paving the way for balance sheet expansion for the first time in years.
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These elements combined could generate a substantial liquidity tailwind for BTC and other risk assets. Historically, BTC tends to react vigorously to shifts in liquidity, and traders are already monitoring for indicators of a market bottom. Some analysts speculate that the current downturn toward $100,000 could signal the final sell-off before a recovery.
In summary, this week may be the most strained moment for U.S. liquidity before conditions loosen as the year concludes. As market fluidity returns, BTC may be the first asset to reap the rewards. For traders with a long-term view, now could be a favorable opportunity to build positions ahead of the next price breakout in November and December.
The ongoing U.S. government shutdown and high Dollar Index have created a challenging environment for Bitcoin; however, as the liquidity hardship subsides, trading market conditions could turn uptrend again.
In the rapidly evolving world of Bitcoin news, one constant remains — markets respond quickest when liquidity flows, and that could be precisely what lies ahead.
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Key Takeaways
- Liquidity Drain Pressures Bitcoin: Prolonged U.S. government shutdown and surging Dollar Index have tightened available volume, causing BTC to drop below $104,000.
- Upon the conclusion of the shutdown and resumption of Treasury spending, increased market fluidity could catalyze a BTC price rebound in late November.
The post US Government Shutdown Hits Day 35 – BTC News: Will Liquidity Hunters Push Bitcoin USD Higher In November? appeared first on 99Bitcoins.
