Crypto News: U.S. Government Shutdown Hits Record and Still Counting

The U.S. government shutdown hits day 35, tying the longest in history. Bitcoin drops 21%, with a potential rebound if the shutdown ends soon.

The U.S. government shutdown has now reached its 35th day, making it the longest shutdown in U.S. history

As it continues, many are worried about its effects on the economy, including the crypto market. Bitcoin, for example, has dropped around 21% since the shutdown started. However, some analysts believe a rebound could follow once the government reopens.

Economic Disruptions and Strain on Services

The shutdown is creating serious disruptions in federal services and programs. Food assistance for low-income Americans has been impacted, with SNAP benefits delayed. This affects millions of people who rely on the program for basic needs

The Trump administration has begun partially funding SNAP benefits, but full distribution may take weeks.

In addition, federal workers are not being paid. This includes air traffic controllers, airport security personnel, and law enforcement officers. As a result, essential services are being affected, with air travel seeing delays and cancellations. The longer the shutdown lasts, the more these disruptions will be felt across the country.

The economic toll is growing. According to the Congressional Budget Office, if the shutdown extends for another week, it could cost the U.S. economy $11 billion.

Moreover, the lack of key government reports has left the Federal Reserve without crucial data to make policy decisions.

Political Stalemate in Washington

The shutdown continues because of a deep political divide in Congress. The Senate, controlled by Republicans, has rejected stopgap funding bills passed by the House

Republicans want concessions on healthcare subsidies, which Democrats are refusing. Without compromise, the government remains closed, and no resolution seems near.

Senate Majority Leader John Thune has expressed optimism that a deal could be reached soon. However, with no clear solution in sight, talks remain stuck.

President Donald Trump has suggested abolishing the Senate’s 60-vote filibuster threshold to break the deadlock. But this proposal has faced resistance from some Republicans in the Senate.

As the shutdown drags on, pressure is mounting on lawmakers to act. While behind-the-scenes negotiations continue, the deadlock shows no signs of easing. Americans are left waiting for a resolution, while the political stalemate prolongs the shutdown.

Potential Impact on the Crypto Market

The ongoing government shutdown is also affecting the crypto market, particularly Bitcoin, according to analyst Ash Crypto

Bitcoin has fallen by about 21% since the shutdown began. This mirrors a similar trend seen during the 2019 shutdown, when Bitcoin dropped but later rebounded. Some crypto investors are watching closely, hoping for a similar recovery.

Experts believe that if the shutdown ends soon, Bitcoin and other cryptocurrencies could see a strong rebound

Prediction markets show that many expect the shutdown to last around 44 days. However, some Senate members, like Sen. Markwayne Mullin, are confident the government will reopen within the week.

Historically, government shutdowns have led to market volatility, but recoveries often follow once a resolution is reached. If the government reopens soon, investor confidence could return, leading to a surge in crypto prices

For now, the market remains uncertain, with many waiting for signs that the shutdown is nearing an end.