U.S. Federal Government On Track to Another Shutdown as Top Analyst Signals Further Bitcoin Drop
The United States federal government is once again facing the possibility of a shutdown by the end of Friday. Congressional Democrats have been pushing for changes to ICE policies, creating a roadblock for President Donald Trump. On Thursday, the Senate blocked a House-approved 6-bill spending package with a vote of 45-55. The Senate included extended DHS funding through September 30 without significant reforms, leading to the bill’s failure to reach the required 60 votes. A bipartisan group, including all Democrats and 7 Republicans, voted against the bill, refusing to give DHS a blank check.
Traders are bracing for the potential federal government shutdown, with prediction traders showing uncertainty. According to Polymarket, the odds of a U.S. government shutdown are currently at 50%, a decrease from earlier in the week as traders were anticipating a last-minute bipartisan deal. The previous government shutdown increased bearish sentiment on crypto, causing heightened fear among traders. Market data from CoinMarketCap shows that the Fear and Greed Index is currently at 38, indicating fear of further capitulation.
In terms of Bitcoin price, there is expected to be heightened volatility over the weekend following a drop below $84k on Thursday. The flagship coin has seen a decrease of over 5% in the last 24 hours, trading at around $84,462 at press time. Market analyst Aksel Kibar predicts that Bitcoin price is heading towards a new multi-month low, potentially retesting its April 2025 support level around $76k. However, if a budget is passed in the coming days, Bitcoin price may find solid support around $80k. Institutional investors, led by Strategy and Metaplanet, have been accumulating more Bitcoins as Wall Street analysts predict a market reversal in the precious metal industry.
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