Bounce in crypto markets mostly stopped on Tuesday with the US government on the field to shut down at midnight eastern time.
Bitcoin – After previously sliding approx. 2% from overnight heights near $ 115,000 – managed a late afternoon rally to $ 114,300, up marginally from 24 hours ago. Ether traded just over $ 4,100 and slid 1.3% in the same period.
Most symbols at the wide marketbenchmark Coindesk 20-index emitted falls, with Uniswap and Leading loss.
A control in traditional markets showed gold climbing an additional 0.5% to $ 3,850, extending its record-breaking race, while the Nasdaq and S&P 500 stock indices also so late events to move to positive territory just minutes ahead of the end.
Most market participants are in waiting-and-SE state as the US government seems to be going towards a particular shutdown of uncertain length.
When the government shuts down, all non-essential activities during the executive branch will stop, which is likely to include any of Securities and Exchange Commission, Commodity Futures Trading Commission and Federal Bank Regulators’ ongoing efforts to create new rules for Crypto Industry.
While the shutdown has no influence on people’s ability to submit comments on open regulatory efforts, someone at these agencies is unlikely to be tasked with reading feedback. This stop can also affect the ongoing efforts of companies listing and trading with exchange -traded funds tied to cryptocurrencies like Solana and Coindesk reported earlier Tuesday.
Congress’s work on laws on crypto -market structure will be delayed. The Senate Bank Committee already postponed a preliminary planned mark – a consultation to discuss the provisions on the bill – on its market structure draft from Tuesday to later in October. The Senate Agricultural Committee has not published any draft legislation. However, the Senate Finance Committee still intends to hold a hearing Wednesday to investigate crypto -tax issues.
Closure leaves BTC fragile, BitFinex warns
A shutdown would also stop the release of key economic indicators such as job data and CPI inflation reports that could enhance volatility across asset classes, including cryptos, warned BitFinex analysts in a report.
Data delays can complicate the Federal Reserve’s monetary policy decisions with ring effects that repeat themselves across prices noted the report. Global investors have already cut out of us exposure, a trend that a prolonged shutdown could speed up, the report said.
“For markets, the immediate risk of confidence is the erosion and data -strained spots rather than systemic economic instability,” BitFinex analysts said of the potential shutdown.
Zooming out is BTC still in a corrective phase since Fed’s interest rate in September, which turned out to be a “buy rumor, sell the news event,” BitFinex analysts said.
The report noted that unlike previous cycles, this has unfolded in three different waves in several months, each uncovered of widespread profits.
“At each cyclic top, more than 90 percent of the moved coins were transferred in profits, a clear signal of widespread distribution,” the analysts wrote.
After just stepping back from the third such top, BitFinex analysts are looking at probabilities tilting against further consolidation.
“Deep political polarization, rising tax deficits and a fragile global economy market leave more sensitive to shock,” they added.
