Impact of the Shutdown on the Crypto Market


The shutdown ( of the US government generally increases uncertainty in global financial markets, which historically leads investors to seek safe-haven assets.
Initial Risk Aversion and Decline: At first, political and economic uncertainty may lead to a general sell-off of risk assets, which includes the cryptocurrency market, resulting in temporary declines.
Search for Safe-Haven and High Assets: However, if the shutdown persists, Bitcoin )\text{BTC}( and other cryptocurrencies tend to be viewed by some investors as an alternative safe-haven asset or a hedge against the weakening of the US dollar and government fiscal policies. In this scenario, BTC and gold may appreciate.
BTC-0.93%
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