"Market uncertainty persists despite end of shutdown… concerns over omission of October indicators and policy confusion"

Source
Minseung Kang

Summary

  • Reported that the U.S. government's end of the shutdown has alleviated short-term concerns about economic disruption.
  • Stated that gaps in major economic indicators and uncertainty in policy direction remain, which could keep markets cautious.
  • Said that markets, including Bitcoin, show accumulation within a trading range amid increased volatility, and that data gaps and the possibility of additional shutdowns could affect investment outlooks.
Photo = Shutterstock
Photo = Shutterstock

The U.S. government has ended its historically longest shutdown, which lasted about 6 weeks. However, there are views that market caution may persist because of gaps in major economic indicators and uncertainty over future policy direction.

On the 13th, according to BlockBeats, a specialized virtual asset (cryptocurrency) media, U.S. President Donald Trump signed a temporary budget bill to officially end the shutdown. The bill contains provisions to fund government operations until January 30 next year, resolving short-term concerns about economic interruption.

However, the White House said the October Nonfarm Payrolls and Consumer Price Index (CPI) reports could be "permanently omitted" due to the effects of the shutdown. As a result, there are assessments that the U.S. Federal Reserve (Fed) will face a 'blind flight' (Blind Flight·policy decisions made in the absence of data) when deciding whether to implement additional rate cuts at its December meeting due to the lack of data.

Bitcoin (BTC) rebounded immediately after the announcement to the $103,000 level. Short-term support is $101,325, and the main resistance area is $107,362. The market continues to accumulate within a trading range, and no clear trend reversal signals have appeared.

A BitUnix analyst said, "With the government back in operation, market confidence has been restored in the short term, but data gaps and the possibility of another shutdown could still shake market outlooks." He added, "As uncertainty in traditional financial markets has increased, funds may move to assets with high short-term volatility," and "future capital flows will be driven by dollar flows and changes in interest rate outlook."

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Minseung Kang

minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
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