US Government Shutdown, Uncertainty in Crypto Market Increases

With the partial shutdown of the US government, Bitcoin price has dropped to $83,000. Investors are preparing for uncertainty in the markets on Monday. The disagreement in Congress regarding the budget has increased pressure on the already weak crypto market and deepened investors' concerns.

On the last trading day of the week, major cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) experienced significant losses. On Friday, the price of Bitcoin was trading around $83,559, and despite a 1% recovery during the day, the weekly loss rate was approximately 7%. On the other hand, the price of Ethereum dropped to $2,686, and its weekly loss reached 9%. XRP was trading at $1.72, having lost about 10% of its value over the past week.

The shutdown is expected to be technically short-lived. With the Senate expected to approve the budget package, the House of Representatives will be on vacation until Monday, pushing the process to the following week. However, this situation is creating additional pressure on risk assets, especially in the low liquidity environment over the weekend.

From a market perspective, the critical situation is not so much the economic impact of the shutdown but the perception and uncertainty it creates. The intense news flow added to low liquidity is leading investors to take more cautious positions. Additionally, discussions have emerged in prediction markets like Polymarket and Kalshi about how the term "shutdown" should be interpreted. The difference between the government being theoretically shut down and its real-life effects has highlighted the contract rules in these markets.

Looking at the overall picture, the developments represent a sensitivity test for the crypto market rather than a direct economic shock. News coming from Washington on Monday will play a decisive role in determining the direction for the new week.