The US government could close again this week, and Bitcoin traders are waiting. If Congress does not agree to the funding agreement by midnight Tuesday, the majority of the federal government will suspend operations.
The closure will freeze economic reports, delay important data and make life more difficult for those trying to predict what the Federal Reserve will do next with interest rates. That uncertainty would rattle Bitcoin and the broader crypto market.
Traders are particularly focused on job reports. It is supposed to drop this Friday, but if you don’t have the funds, you won’t. That’s a problem as employment data directly affects the Fed’s interest rate decisions and Bitcoin traders rely on that information to see where the market is heading. Without it, some people will hesitate, they will panic and their volatility may jump faster.
Shutdown slows down data and feeds into a bitcoin swing
This shutdown isn’t going to hit everything, but as Cryptopolitan has, food stalls like the Bureau of Labor Statistics, which collect and release economic data, It has been reported. If a salary report is not released, it will not only slow down the numbers, but also shake confidence across the financial markets.
Bitunix analysts warned that this type of delay would “enhance vulnerability,” and that a mix of rate cut hopes, political drama and market fears could lead to “sharp drop and rebound swings” of Bitcoin and other risky assets.
Deutsche Bank’s John Reid said the employment report could be the first real casualty. “This week’s big event may not actually happen,” he said. “In October 2013, the shutdown prevented us from getting our September employment report until the 22nd of the month.” So, traders may be staring at a data blackout that lasts for weeks when they need to be clarified.
Such delays can cause a wild price movement. Nansen’s Nikolai Sondergaard said the closure “could cause a surge in short-term volatility.” But he added, “If investors assume that the ‘shutdown’ will be resolved quickly, will it be more than that?” He also said that broader financial markets could feel a hit before anything happens.
Bitcoin is currently trading above $114,000, an increase of 3.8% over the past 24 hours. However, according to Coingecko, it is still a 0.7% decrease compared to two weeks ago. It tells you where the mood is: it rises a little, but uncertain as hell.
Shutdown hit Bitcoin in both ways
This is not the first shutdown of Bitcoin. In 2013, the coin rose 14% due to the 16-day closure. This ranges from $132.04 to $151.34. However, during the record 35-day closure between December 2018 and January 2019, Bitcoin fell 6%, down from $3,802.22 to $3,575.85. difference? In 2013, the market was a strong bull run. In 2018, I was bleeding.
Julio Moreno of Cryptoquant explained: By contrast, by the second half of 2018, “Demand for BTC was contracted during the Bear market.” Now he says, things look like 2013. “When we enter Q4, there is a growing demand for Bitcoin. This is usually a positive season in terms of price performance.”
Still, nothing is guaranteed. In the forecast market run by Decrypt’s parent company Dastan, users are losing confidence in future interest rate cuts. The percentage of people suspecting the Fed will be implementing two cuts in 2025, jumping from 40% to 75% this month. Some hope for cuts at the Fed’s final two meetings of the year. Others believe that no cuts will occur until 2026.
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