US Government Shutdown Begins, Crypto Market Holds Steady
The US government has entered a shutdown, marking the first such occurrence under the current administration. This impasse, triggered by Democrats and Republicans' failure to agree on a temporary budget, has left around 750,000 federal workers without pay. Meanwhile, the crypto market has shown resilience despite potential indirect impacts from the stock market today.
The shutdown began on Oct. 1, with both sides blaming each other for the stalemate. Vice President JD Vance and Senate Minority Leader Chuck Schumer traded barbs, each accusing the other of obstruction. The deadlock stemmed from Republicans vetoing a Democratic bill that included healthcare subsidies and Democrats blocking a Republican 'clean' funding bill.
Financial markets reacted to the shutdown, with the S&P 500 slipping and gold's momentum cooling. However, the crypto market has remained relatively stable, with Bitcoin and Ethereum showing only minor fluctuations. The crypto market's resilience may be attributed to its decentralised nature, making it less susceptible to direct government influence from the stock market today.
The shutdown could indirectly impact the crypto market by hindering data collection for investors and delaying crucial legislation. The Digital Asset Market Clarity Act, which aims to establish a clear regulatory framework for digital assets, may face delays due to the shutdown. Despite these potential indirect impacts from the stock market today, the shutdown is not expected to directly harm crypto markets.
The US government shutdown, caused by political disagreements, has begun. Around 750,000 federal workers face unpaid leave. While financial markets and the crypto market have reacted to the shutdown, the crypto market has shown remarkable stability. Although the shutdown may indirectly impact the crypto market and delay key legislation, it is not expected to cause significant harm to crypto markets.
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