US Senate Leaders and White House have said that they’ve reached a framework bipartisan agreement to avoid a partial shutdown of the government. However, the agreement must still be approved by key votes before the funding expires.
The Negotiations have been concluded stalled Over funding for Department of Homeland Security (DHS) and Immigration Enforcement. With the current Stopgap Spending Bill set to expire Friday, midnight Eastern Time at the latest, lawmakers will be racing to finish and vote the package by the deadline.
Donald Trump was in Washington, D.C. on Thursday. stated This is the “only thing” What could be slowing down the country? “another long and damaging Government Shutdown.” He claimed to be a liar. “working hard with Congress” To secure funding.
After a funding gap of one week, the emerging agreement may allay some fears. Bitcoin plunged to a nine-month low of $81,000Bitcoin, a spotting (BTCEtherETH) exchange-traded funds (ETFs) Around $1 billion has been spent on the influx of new vehicles. outflows So far, so good
Also, broader risk assets swung Federal Reserve shutdown, geopolitical and other headlines are a combination of the news. “safe haven” Reuters also reported that industrial commodities, such as oil, gold and silver, saw sharp changes in price as investors repositioned.
TGA grows ahead of possible freeze in spending
Nick Heather from One.io’s trading department told Cointelegraph the Bitcoin drop was a reflection of all other markets. “tightening liquidity conditions” Crypto-specific weaknesses are not the only weakness.
Then he said “Bitcoin’s move down to the low-$80,000s looks far more like a liquidity-driven adjustment than a loss of conviction in the asset itself.”
Related: Bitcoin loses crucial $84K support: How low can BTC price go?
On Friday, BitMEX co‑founder Arthur Hayes pointed The Treasury General Account has seen a $300 billion decline in US Dollar liquidity over the past few weeks. This is largely due to an increase in TGA. Some argue that this may have been a government move to raise cash reserves ahead of potential spending disruptions, and Bitcoin’s drop was in line with tighter conditions for the dollar.
Heather commented that when the US Treasury rebuilds their cash balance. “risk assets tend to come under pressure, and crypto is often one of the first to react.”
He said he had monitored his onchains internally and found that “whale wallets remain largely inactive, indicating that larger holders have not yet started accumulating and reinforcing the view that current moves are liquidity-driven rather than conviction-led.”
Markets on the edge of their seats due to geopolitics
After Trump’s election, investors’ nerves were still frayed. declared Cuba is in a state of national emergency signaled On Wednesday, he said he would weigh military options in relation to Iran’s nuke and missile program while keeping geopolitical dangers in the forefront.
Related: Iran’s crypto ecosystem spikes to $7.8B amid mass protests: Chainalysis
The price of precious metals has fallen sharply since January. Silver is particularly affected. “officially” You can enter by clicking on the link. “bear market territory,” according The Kobeissi Letter shows that gold is down by 22% since its peak and briefly fell below $5,000 per ounce, before rising to $5,100 as of the date of this article. according TradingView.
Bitcoin performance and past shutdowns
The Episodes government shutdowns The US economy is often delayed, which can lead to a decline in consumer and business confidence. It also raises questions regarding the fiscal outlook of the US. This leads to higher volatility for equities and bonds as well as the dollar.
Heather pointed out that in the past, government shutdowns have created uncertainty, rather than a clear direction. “the immediate impact is usually higher volatility, not a clean trend.”
Heather stated that traders still face tightening conditions in the financial markets and elevated geopolitical threats, even if they avoid a shutdown.
“Until there’s clearer visibility on liquidity and policy, both traditional and digital asset markets are likely to remain sensitive to headlines and prone to abrupt repricing.”
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Source: cointelegraph.com
