Former U.S. President Donald Trump is engaged in discussions with lawmakers as the U.S. government nears a potential shutdown before the March 14, 2025 funding deadline.
A shutdown could increase volatility in risk markets, impacting cryptocurrencies like BTC and ETH, as uncertainty looms over federal spending and contracting.
As the United States approaches the March 14, 2025 funding deadline, the potential shutdown looms large. Former President Donald Trump is reportedly engaging with lawmakers, yet no finalized deal is apparent so far.
Key players include Trump and senior government leaders like President Joe Biden. While political strategies are unfolding, there are no confirmed direct statements by Biden or Trump on negotiations. The budgetary gridlock persists. OMB Guidance outlines contingency plans which might be considered in these discussions.
Shutdown Uncertainties Leave Crypto Markets Unmoved So Far
The potential shutdown historically affects agency fiscal operations, causing market volatility. Increasing uncertainties might influence sectors with government ties. However, no substantial influence on cryptocurrency markets has manifested yet.
Historically, risk markets including BTC and ETH demonstrate heightened volatility during shutdowns. Current on-chain data indicates no unexpected shifts in Total Value Locked across DeFi protocols, suggesting a cautious but stable market sentiment. Arthur Hayes, Co-founder of BitMEX, stated, “Historical shutdown patterns show that crypto can remain resilient in the face of fiscal stalemates, but uncertainty always clouds the market.”
How 2018-2019 Shutdowns Impacted Crypto Stability
Past government shutdowns like in 2018-2019 saw mild crypto market disruptions. While short-term declines were noted, digital assets often stabilized as investors navigated broader economic concerns. The GAO Blog provides insights into how continuing resolutions impact operations, potentially influencing crypto.
Industry experts, including those at Kanalcoin, suggest cryptocurrencies may retain resilience unless prolonged instability arises. Insight indicates regulatory or fiscal shifts could adjust market dynamics, highlighting the pivotal role of Federal Reserve actions.
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