US institutions have been preparing for a government shutdown for some time. The SEC has already taken care of many paperwork tasks ahead of time. In fact, next week we will even see around 7 futures Ether ETFs being traded. Moreover, the spot BTC ETFs, which were expected to be rejected in mid-October, have been postponed early. So how will this situation affect cryptocurrencies?
A 45-day extension decision has been made with the support of two parties in the House of Representatives. According to the statement of the Senate majority leader a few minutes ago, unless there is a big surprise, the bill will also pass the Senate. Thus, there will be no problem like a government shutdown until mid-November.
Politicians will try to find a longer-term solution without disrupting operations during the 45-day period.
Government shutdown and debt ceiling issues are often confused with each other. While the last government shutdown occurred 5 years ago, we have witnessed the frequent discussion of the debt ceiling issue. So what will be the consequences of this shutdown if the Senate does not approve?
According to experts’ estimates, a 1-week shutdown in GDP data could cause a drop of less than half a point. This would be challenging for the US economy.
Bitcoin has proven to be a good option (at least for now) for combating inflation, recession, and many other peculiarities. It was not expected that the government shutdown would result in a positive outcome for Bitcoin. So the bipartisan support from the House of Representatives is a positive development for BTC.
So what are the experts’ predictions for the price of BTC? Popular crypto analyst Daan Crypto Trades and a few traders were expecting the conditions to change slowly.
“We had fluctuations last week, but open interest decreased, so I doubt we’ll see any strange price movements until later on Sunday.”
An attached chart shows that the opening and closing prices of CME Group Bitcoin futures potentially act as a magnet for the BTC spot price.
According to this, the BTC price can linger around and slightly below the $27,000 limit for a longer period than expected. Currently, the weakness in volumes and the tendency of major investors to stay on the sidelines also support this.