Key Points
- As Congress rushes to approve funds and prevent a shutdown, Bitcoin and Ethereum prices have remained relatively stable today.
- Amidst political instability, approximately 85% of users on the Myriad prediction platform anticipate a significant price decrease for Bitcoin, estimating at least 48 negative price movements before Wednesday noon.
- Ledn’s Chief Investment Officer, John Glover, retains a positive outlook, pointing out that previous government shutdowns during the Trump administration saw digital asset price declines as opportunities to buy, with quick market recoveries.
Early Tuesday trading shows Bitcoin and Ethereum holding steady, as the clock ticks for Congress to greenlight a financial agreement that would stop a U.S. government closure.
Currently, Bitcoin’s value is around $113,435, reflecting negligible changes in the last day but a minor 0.4% gain in the past hour. According to crypto data aggregator CoinGecko, Ethereum is marginally down by 0.3% today, trading at approximately $4,153.
The potential for postponed critical U.S. economic releases, coupled with political doubt, has instilled a sense of apprehension among some Bitcoin traders. Users of Myriad, a prediction platform owned by DASTAN, the parent company of Decrypt, appear pessimistic about Bitcoin’s performance in the upcoming week.
A significant 85% of participants predict that Bitcoin will experience at least 48 negative trading periods before noon on Wednesday. This sentiment sharply increased overnight, after oscillating near a 50-50 split for most of Monday.
However, John Glover, the leading investment officer at Bitcoin lending platform Ledn, offers a counter perspective.
He highlighted that former President Donald Trump faced two government shutdowns during his initial term and demonstrated a willingness to use this tactic during negotiations.
The initial shutdown under Trump’s leadership lasted three days in January 2018. The second one extended for 35 days, becoming the longest shutdown event in U.S. history.
“While previously implemented to encourage greater flexibility in Congressional negotiations, both shutdowns were generally perceived as short-lived. Risk-based markets, which initially declined, subsequently experienced rapid recoveries,” he told Decrypt. “Any decline in digital asset values resulting from a shutdown will likely be viewed as a buying opportunity by the market.”
Instead of passing a full budget package, House Republicans have passed a temporary bill to keep the government funded until November 21. But, the House’s temporary funding measure proposes reductions in healthcare coverage, which could impact millions of Americans.
This issue has become a sticking point for the Democrats.
Despite the Republicans having a majority in the Senate, their margin is slim. With 53 seats, they require bipartisan support to secure the 60 votes needed for a filibuster-proof majority on the legislation.
The Senate was scheduled to reconvene at 10:00 a.m. Eastern Time and is scheduled to vote on a continuing resolution later today.
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