U.S. political leaders say a bipartisan framework is in place to avert a partial federal government shutdown, but financial markets remain uneasy as key congressional votes are still outstanding. The current stopgap funding measure is set to expire at midnight Eastern Time, leaving lawmakers with a narrow window to finalize and approve the deal.
President Donald Trump said Thursday that negotiations were close, warning that a prolonged shutdown would be economically damaging. While the comments helped reduce immediate shutdown fears, investors remain cautious given the lack of formal approval and broader macro uncertainty.
Crypto and Risk Assets React to Liquidity Strains
Market volatility has intensified over the past week. Bitcoin recently fell to a nine-month low near $81,000, while U.S.-listed spot Bitcoin and Ether exchange-traded funds have recorded nearly $1 billion in combined outflows. Analysts note that the price action reflects tightening liquidity rather than a collapse in confidence toward digital assets.
Rising balances in the U.S. Treasury General Account have drained dollar liquidity from markets, a dynamic that often pressures risk-sensitive assets such as cryptocurrencies. Similar volatility has been observed across equities and commodities.
BitMEX co‑founder Arthur Hayes says;
Beyond fiscal uncertainty, geopolitical developments have further unsettled investors. Recent U.S. emergency declarations and renewed tensions involving Iran have kept risk sentiment fragile. Precious metals and energy markets have also experienced sharp swings, underscoring how sensitive global markets remain to policy and geopolitical headlines.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.