Bitcoin investor sentiment 'cools' as U.S. shutdown drags on

As the U.S. government shutdown entered its 30th day, Bitcoin (BTC) prices came under renewed downward pressure. Uncertainty over the timing of an interest-rate cut by the U.S. Federal Reserve (Fed) and a political deadlock have overlapped, rapidly spreading investors' risk-aversion.

On the 30th (local time), on the Binance Tether (USDT) market, Bitcoin was trading near $107,000. It has fallen nearly 15% from the all-time high recorded on the 6th (about $126,000). The prolonged shutdown has increased economic uncertainty in the U.S., and with short-term funds exiting risky assets, Bitcoin selling has intensified.

Prediction market Myriad saw the probability that this shutdown will exceed the longest record during the first Trump administration (35 days) surge to 83%. With Congress failing to reach a budget agreement and many federal agencies partially closed, CBS News reported that the Senate's postponement of the resumption of negotiations until Monday could lead the situation to become the 'longest shutdown ever.' The longer political uncertainty persists, the more consumption and investment sentiment may be dampened, raising concerns that volatility across risky asset markets could increase.

The Fed's interest-rate policy is also adding to market uncertainty. Fed Chair Jerome Powell recently said, "We cannot be certain of a rate cut in December," weakening expectations for liquidity expansion. Some experts said, "If expectations for monetary easing are dashed and political risk is added, Bitcoin could retest the $100,000 support level in the short term."