Government #Shutdown Could Mark #Crypto Market Bottom


Ryan Lee, chief analyst at Bitget, suggests both $BTC and the S&P 500 may benefit from the current government shutdown through lower U.S. interest rates. The cryptocurrency's immunity to government and political uncertainties makes it attractive to mainstream traditional investors, he explained.


Wednesday marked the first U.S. government shutdown in six years, stemming from partisan divisions over fiscal year 2026 funding. Republicans advanced a continuing resolution without Democratic-requested policy changes, including permanent Affordable Care Act tax credit extensions.


$BTC climbed 2.9% in 24 hours to trade at $116,427 Wednesday, while gold prices rose 0.7%. Large investor demand for safe-haven assets appears to be increasing amid uncertainty surrounding the #shutdown's duration.


Lee emphasized that $BTC reclaiming the $116,000 level signals positive momentum for the wider cryptocurrency market entering October. Most promising #altcoins appear to have bottomed out, despite likely corrections ahead, he stated.


Historical market reactions to government shutdowns show mixed patterns. During 2013, stocks fell while $BTC rallied, whereas both equities and $BTC valuations declined during the 2019 shutdown, according to Milk Road Macro.

image
October 01, 2025 at 7:17 PM
26
3