U.S. Government Shutdown Looms,crypto Market Faces Uncertainty
The U.S. government is on the brink of a shutdown due to a budget stalemate between Republicans and Democrats. This could have meaningful implications for the crypto market.
President Donald Trump and Vice President JD Vance have warned of a likely shutdown starting October 1. The main issue is healthcare spending. Both sides are blaming each other for the impasse. As of September 30, 89% of Polymarket voters believe a shutdown is imminent.
A shutdown would halt the publication of key economic data like employment and inflation figures. This could increase market volatility, making it harder for traders to make informed decisions.
the crypto sector could also face setbacks. The passage of the Clarity Act, wich aims to set clear rules for cryptocurrencies, may be delayed. The SEC would also pause its work on crypto regulations and ETF approvals.
Shutdowns typically furlough public workers and disrupt government services. The last shutdown in 2018-2019 lasted 35 days and caused a significant drop in consumer sentiment.
For the crypto market, the impact is indirect but notable. Traders will lack crucial economic data, and regulatory progress may slow. However, past shutdowns have shown that the biggest price declines often occur before the
