Key Takeaways:
- The U.S. government shutdown is fueling crypto volatility, with Bitcoin and select altcoins showing safe-haven demand as political uncertainty rises.
- Regulatory paralysis from SEC and CFTC furloughs threatens delays in crypto ETF approvals, listings, and broader market oversight.
- Analysts are split, but historical trends suggest extended shutdowns could trigger dovish Fed action, benefiting risk assets including crypto.
The United States has entered its first government shutdown since 2018 after Congress failed to agree on a funding bill for the 2026 fiscal year.
The deadlock has already shaken markets, with Bitcoin and gold climbing as investors looked for safe-haven assets.
The 🇺🇸 US government shutdown has started.
— Mister Crypto (@misterrcrypto) October 1, 2025
If history repeats, the $DXY will dump and Bitcoin will pump! pic.twitter.com/1apGdqa51v
Analysts suggest the shutdown could mark a turning point for crypto, though outcomes from past shutdowns remain mixed.
In 2013, equities weakened while Bitcoin rallied, but in 2019 both markets fell.
One of the most immediate impacts is the disruption to regulators.
The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are operating with skeleton staff, delaying reviews and stalling crypto-related filings.
Economists warn that the shutdown will also pause key government data releases, depriving markets of updates on inflation and employment.
Despite the uncertainty, some analysts argue that lower U.S. interest rate expectations could benefit both stocks and digital assets.
Bitcoin’s rebound above $116,000 is seen as a positive signal, and if the shutdown drags on, the narrative of crypto as a hedge against political dysfunction may strengthen.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
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