US Government Shutting Down: Bitcoin Decline at Risk

While there has been significant activity in cryptocurrency markets recently, short-term risks for **Bitcoin** continue to increase. It was announced that the US Government officially shut down after approximately 7 years, due to a failure to agree on the budget bill. Bitfinex analysts stated that this situation would negatively affect both public services and the operations of financial regulators such as **SEC** and **CFTC**. It is emphasized that the government shutdown could lead to widespread loss of confidence.

In the report published by Bitfinex, it was stated that the biggest risks created by the government shutdown in crypto markets are “erosion of trust and data blindness.” This situation stems from the non-disclosure of critical economic data such as **unemployment**, **inflation** (Consumer Price Index), and **growth**. This uncertainty makes it difficult for investors to determine market directions and creates short-term fragility, especially for **Bitcoin**.

Bitfinex states that **Bitcoin** is progressing through a correction phase that began after the **Federal Reserve** interest rate cut in September. The report indicates that this correction phase, unlike previous market movements, is limited to intense profit-taking experienced after three separate multi-month upward movements. Analysts remind that over 90% of coins traded between each peak were sold at a profit, signaling widespread selling.

The cryptocurrency market is becoming more sensitive due to increasing political uncertainty and deepening political polarization. Rising budget deficits and fragility in the global economy make markets more vulnerable to further shocks. Bitfinex forecasts that selling pressure on **Bitcoin** could increase if the government shutdown is prolonged. As of now, **Bitcoin** is trading at $116,265, **Ethereum** at $4,295, **Solana** at $217, **BNB** at $1,029, and **XRP** at $2.93.