With the United States entering a partial government shutdown and the House now set to take action on Monday, crypto traders are bracing for a potentially volatile start to the week.
The uncertainty that followed the fall in gold and silver prices has already influenced the crypto market, wiping almost $200 billion from the market.
The US government is partially closed
Crypto prices remained under heavy pressure after updates on Friday evening showed the US government entering a partial shutdown. Lawmakers approved a temporary funding plan, but the House did not vote on it before going into recess.
As a result of this delay, the shutdown began and the House is now expected to take action on Monday. This uncertainty has kept financial markets under stress.
At the same time, the market is under pressure due to a sharp decline in gold and silver prices. Gold is down nearly 15%, while silver is down about 32%, adding fear to an already weak market.
Bitcoin also felt the impact, dropping from around $88,000 to below $82,000 in hours. Although Bitcoin has seen a slight recovery, it is now trading around $83,559, but still down almost 5%.
What could happen to Bitcoin and Altcoins on Monday
Historically, cryptocurrency markets tend to open cautiously after such major political events. If the House shows progress and moves closer to approving the spending bill, Bitcoin could see a slight rebound of around 2-4%. Major altcoins may follow with slightly higher volatility.
However, if lawmakers remain divided or delay action further, selling pressure could return. In previous shutdowns, key data such as employment and inflation reports were delayed, making it harder for traders to assess risk.
Thus, Bitcoin fell by 9%, from around $103,000 to $92,000, while altcoins declined between 12% and 25% due to low liquidity.
Top Crypto Analysts Expect BTC to Hit $74,000
In this situation, crypto analyst Ted expects Bitcoin to test key support near $80,000. If this level fails, Bitcoin could fall even further towards the April 2025 low near $74,000.
Altcoins, meanwhile, could see sharper and faster moves as trading opens for the week with low liquidity.
Therefore, crypto performance on Monday will largely depend on House signals, liquidity conditions, and initial trading volume.
FAQs
How is the US government shutdown affecting crypto markets?
A shutdown increases uncertainty, reduces liquidity and causes volatility, with traders delaying decisions until lawmakers act.
What could happen to Bitcoin on Monday after the close?
If the House signals progress on funding, Bitcoin could rebound 2-4%. Delays could trigger further selling and higher volatility.
How are altcoins likely to respond to this market uncertainty?
Altcoins may experience greater price fluctuations than Bitcoin due to low liquidity and increased investor caution.
