The United States federal government has experienced its first shutdown since 2018. A clash over healthcare funding between Senate Republicans and Democrats led to the dismissal of last-minute budget proposals, resulting in today’s official government closure.
This shutdown implies that numerous federal workers and active-duty military personnel will miss their paychecks, while operations at places like national parks and the Smithsonian face uncertainty. Although services such as Social Security payments and passport processing will persist, delays are likely.
Previous Impacts on Bitcoin
Historically, government shutdowns have not had a direct adverse effect on cryptocurrency markets. For instance, during the longest recorded shutdown lasting 35 days from 2018 to 2019, Bitcoin’s value decreased by roughly 6%, remaining stable within the $3,575-$3,800 range. At that time, BTC was already confined to a narrow trading band following a significant drop of 50% in prior months.
Experts suggest that while government shutdowns don’t serve as immediate triggers for Bitcoin or cryptocurrencies’ movements in the short term; factors like global economic conditions, regulatory developments, and investor risk tolerance play more significant roles in shaping market trends.
The duration of this current shutdown remains uncertain. Although historically rare for such events to exceed two weeks’ length; they have become more common over recent decades—costing around $3 billion GDP during one notable incident back in 2018 when Congress failed at passing budgets across all agencies further complicating matters now too.*This does not constitute investment advice.*