US Shutdown Threat Freezes Crypto Bill as Bitcoin Rally Stalls

Bitcoin Retreats to $112K as Potential US Government Shutdown Looms

  • Potential U.S. government shutdown may halt congressional work, affecting digital asset legislation and financial agencies.
  • Bitcoin’s price retreated to around $112,000 after peaking near $114,800 amid shutdown concerns.
  • Key altcoins showed mixed performance, with Ethereum gaining slightly and Solana and XRP falling.
  • Stock prices of major crypto-related firms and Bitcoin miners declined in pre-market trading.
  • Total cryptocurrency market capitalization fell by 0.3%, dropping below $4 trillion.

A possible U.S. government shutdown set for 12:01 a.m. ET Wednesday could pause congressional activities and impact ongoing digital asset legislation. The Senate’s review of the digital asset market structure bill, known as the CLARITY Act, would be delayed, and the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) would work with limited staff.

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As the shutdown looms, Bitcoin (BTC) dipped to approximately $112,000, after briefly exceeding $114,800 in the previous trading session. Retail sentiment for Bitcoin remained positive despite these fluctuations, with ongoing high activity noted among individual investors.

Other cryptocurrencies also experienced varied results. Ethereum rose by 0.6% and tron (TRX) increased by 1.2%. Meanwhile, Solana (SOL) fell by 0.5%, XRP was down 0.6%, Dogecoin (DOGE) dropped 0.9%, and Cardano (ADA) declined by 1%. The total crypto market capitalization decreased by 0.3%, dropping below the $4 trillion mark.

Shares of digital asset treasuries tracked lower before the market opened. MicroStrategy (MSTR), a major institutional holder of Bitcoin led by Michael Saylor, fell about 2%. Bitmine Immersive Technologies (BMNR), the top public company with Ethereum holdings, also dropped around 2%.

Bitcoin mining companies were affected as well, with Marathon Holdings (MARA) and Riot Platforms (RIOT) down by as much as 2.2% and 2.3% respectively. The major cryptocurrency exchange Coinbase (COIN) declined by 1.7%.

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Vice President JD Vance stated that a shutdown appears likely after Congressional negotiations ended without an agreement. Further updates may depend on whether lawmakers can reach a deal before the specified deadline. For more information about the ongoing budget discussions, refer to this Reuters report.

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