With the clock ticking down to a potential U.S. government shutdown, Bitcoin and Ethereum showed little movement in early trading on Tuesday.
According to crypto data from CoinGecko, Bitcoin’s value hovered around $113,435. It showed neither losses or gains over the previous 24 hours, just seeing a small 0.4% increase in the last hour. Ethereum saw a marginal decrease of 0.3% and its value was about $4,153.
The uncertainty surrounding the political situation, and the possibility of delays to important U.S. economic reports, has led to some bearish sentiment among Bitcoin traders. On Myriad, a prediction platform operated by DASTAN (the parent company of Decrypt), user sentiment appears skeptical about Bitcoin’s short-term performance.
A significant 85% of Myriad users anticipate Bitcoin will experience at least 48 bearish price movements before noon on Wednesday. This negative outlook grew substantially after being roughly 50-50 for most of Monday.
However, John Glover, Chief Investment Officer at Bitcoin lending platform Ledn, expressed a different viewpoint.
He pointed out that former President Donald Trump experienced two government shutdowns during his first term and seemed comfortable using them as a negotiating strategy.
The first government shutdown under the Trump administration lasted three days in January 2018. The second stretched for 35 days, becoming the longest shutdown in U.S. history.
“While in the past this tactic was used to encourage holdouts in Congress to compromise, both times the situation was viewed as temporary, and risk markets initially selling off rebounded quickly,” Glover told Decrypt. “Any dip in digital asset prices because of a shutdown will likely be viewed by the market as a good time to buy.”
What Happens to Bitcoin When the US Government Closes?
Instead of a comprehensive budget package, House Republicans passed a temporary bill to fund the government until November 21. But the bill includes healthcare cuts, potentially affecting millions of citizens.
This has become a sticking point for the Democratic party.
Republicans hold a slight majority in the Senate, with 53 seats. This means they must gain support from Democrats to reach the 60 votes required to overcome any filibuster attempting to block the bill.
The Senate came back into session at 10 a.m. Eastern Time, and a vote is expected on a resolution to extend funding later today.