Virtual asset market also on alert for U.S. government shutdown…"Possible short-term Bitcoin volatility"

Uk Jin

Summary

It reported that if a U.S. government shutdown materializes, attention is focused on whether it will also affect the virtual assets market.
There are forecasts that it will become difficult to predict the Fed's interest rate policy, potentially increasing volatility in the market, including Bitcoin.
As Bitcoin has experienced both rises and falls in past shutdown cases, it said that delays in agreeing on the budget are increasing market vulnerability.

With the deadline for the U.S. Congress to agree on a budget one day away, attention is focused on whether the effects of a shutdown will also hit the virtual assets (cryptocurrency) market.

On the 29th (local time), crypto-focused outlet Cryptopolitan reported that if a U.S. government shutdown materializes, key economic indicators such as employment data would become unavailable, making it difficult to predict the Federal Reserve (Fed·the Fed)'s interest rate policy.

Accordingly, there are forecasts that volatility in the virtual asset market, including Bitcoin (BTC), could increase. A Bitnix analyst said, "If hopes and fears about rate cuts are mixed, risky assets like Bitcoin could see sharp declines and rebounds," adding, "Delays in agreeing on the budget are increasing the current market's vulnerability."

Previously, Bitcoin rose 14% during the 16-day shutdown in 2013, but fell 6% during the longest shutdown that lasted 35 days from 2018 to 2019. It is interpreted that the effect of a shutdown can appear in the opposite direction depending on market conditions.

BTC