U.S. Federal Government On Track to Another Shutdown as Top Analyst Signals Further Bitcoin Drop
The post U.S. Federal Government On Track to Another Shutdown as Top Analyst Signals Further Bitcoin Drop appeared first on Coinpedia Fintech News
The United States federal government is on track for another shutdown by the end of Friday. The Congressional Democrats have been pushing for changes to ICE policies, thus standing in the way of President Donald Trump.
On Thursday, the Senate blocked the House-approved 6-bill spending package with a vote of 45–55. This is after the Senate included extended DHS funding through September 30 with no meaningful reforms.
The bill failed to reach the 60 votes needed, after a bipartisan group – including all Democrats and 7 Republicans – voted against it rather than hand DHS a blank check.
Traders Brace for a Potential Federal Government Shutdown
Prediction traders have shown uncertainty about the potential federal government shutdown. According to Polymarket, the odds for a U.S. government shutdown are 50%, a sign drop from earlier this week as traders anticipated a last-minute bipartisan deal.
The last U.S. government shutdown increased bearish sentiment on crypto, thus accounting for heightened traders’ fear. According to market data from CoinMarketCap, the Fear and Greed Index hovered around 38 at press time, which represents fear of further capitulation.
What’s Next for BTC Price?
Bitcoin price will experience heightened volatility over the weekend following its drop below $84k on Thursday. The flagship coin dropped over 5% in the last 24 hours to trade at about $84,462 at press time.
According to market analyst Aksel Kibar, the Bitcoin price is en route to a new multi-month low, potentially to retest its April 2025 support level around $76k.
Source: X
However, Bitcoin price may find a solid support level around $80k if a budget is passed in the coming days. Furthermore, institutional investors led by Strategy and Metaplanet have been accumulating more Bitcoins as Wall Street analysts predict a market reversal for the precious metal industry.
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