US Shutdown Impacts Crypto Markets: Is a Crypto Recovery Possible? What Occurred with Bitcoin USD During the Previous Shutdown
With gold hitting a new record and a recent US government shutdown unsettling markets, crypto is feeling the strain, as Bitcoin stays around $116,000 while traders prepare for potential data outages and an unclear Fed direction.
The United States has entered a federal government shutdown overnight, creating turmoil in markets globally.
Gold skyrocketed to an unprecedented high, while the dollar showed weakness, as crypto traders debated whether the risk-averse sentiment would hinder or bolster digital currencies.
BTC was trading in the mid-$116,000s, remaining relatively stable by the close of Wednesday.
There were broader crypto movements that were inconsistent, with large caps displaying both minor gains and losses.
Gold reached a new intraday peak of around $3,895 per ounce as investors rushed to safe havens. A depreciated dollar and increasing negativity in equities fueled this market demand, while the likelihood of an October interest rate cut increased following disappointing private payrolls data.
“A government shutdown creates a rather pessimistic atmosphere regarding the US economy,” a metals analyst informed Reuters, referencing the decline in currency and equity values.
The shutdown also threatens to postpone significant economic reports, including the non-farm payrolls data due Friday, which could leave traders with insufficient signals to navigate the market.
