Government Shutdown May End This Week, Affecting Crypto Markets
- White House economic advisor Kevin Hassett indicated the U.S. government shutdown could conclude between October 23 and 26.
- The shutdown, ongoing for three weeks, has caused market concerns as lawmakers debate funding priorities.
- Prediction markets show a rising expectation for a resolution, with probabilities increasing from below 10% to about 35% this week.
- Analysts are closely watching U.S. inflation data that may influence Federal Reserve rate decisions and crypto sentiment.
- An extended shutdown could delay crypto ETF approvals amid growing investor demand.
The potential end of the government shutdown is critical as it coincides with important economic data releases, particularly regarding inflation, which could impact Bitcoin and other liquidity-sensitive assets like crypto.
As markets anticipate a breakthrough in negotiations, the likelihood of a resolution before month’s end has risen significantly to about 35%.
