Bitcoin's Rollercoaster Ride: Government Shutdown's Impact
The crypto world is keeping a close eye on the US Senate's recent budget deal. This agreement, which has enough votes to pass, is a big step towards reopening the government and ending the longest government shutdown in history.
Bitcoin's Wild Ride During Shutdown
Bitcoin's price has been on a wild ride during this shutdown:
- Shot up to a new high of $126,080
- Dropped over 17% to $104,370
The uncertainty around the government shutdown has been a major factor in this price swing.
Historical Context: Government Shutdowns and Bitcoin
This isn't the first time a government shutdown has affected Bitcoin. The last shutdown in late 2018 and early 2019 saw Bitcoin's price soar by over 265% once the government reopened. This historical context makes the current situation even more interesting.
Prediction Markets Weigh In
Prediction markets are also weighing in on when the shutdown might end:
- Polymarket shows a 54% chance it will end between Tuesday and Friday.
- Kalshi predicts a Friday end.
These predictions are important because they reflect the market's sentiment.
President Trump's Announcement
In other news, President Trump announced that most Americans will receive a $2,000 dividend from tariff revenue. This could have further implications for the crypto market, as more disposable income might lead to increased investment.
Crypto Market Sensitivity to Political Events
The crypto market is always sensitive to political events. The current situation is a perfect example of how government actions can impact digital currencies. Investors are hoping that the end of the shutdown will bring some stability back to the market.
