The spike comes days after US President Donald Trump suggested that another shutdown remains likely, stating that the country could “end up in another Democrat shutdown.” The timing has reinforced market expectations that political gridlock is once again becoming a near-term risk.

Budget Standoff Clouds Regulatory Timelines

The renewed shutdown threat is not limited to fiscal politics. It also casts uncertainty over the CLARITY Act, a major crypto bill designed to bring regulatory clarity to digital assets. Previous delays to the bill were widely linked to the record 43-day US government shutdown in October and November, making the current risk particularly sensitive for the crypto industry.

Senate Tensions Intensify

Political pressure increased after Senate Majority Leader Chuck Schumer said Democrats would not support advancing an appropriations bill that includes funding for the Department of Homeland Security. The statement underscored how fragile negotiations remain, with key funding issues still unresolved.

US officials have not ruled out a shutdown scenario, adding to the sense that negotiations could break down rather than move forward quickly.

Crypto Industry Support Remains Fragile

The uncertainty has already affected sentiment around the CLARITY Act. Coinbase CEO Brian Armstrong and several industry executives have withdrawn support, arguing that the current draft could be worse than maintaining the status quo.

Galaxy Digital research head Alex Thorn has also flagged unresolved disagreements, particularly around stablecoin yield structures. According to Thorn, these issues remain one of the most divisive points, with no clear compromise yet in sight.

As Polymarket odds continue to price in a shutdown, the risk is no longer theoretical. Political deadlock now threatens to delay both fiscal decisions and crypto regulation timelines, keeping markets on edge heading into the final days of January.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post US Government Shutdown Alarm: Risk Jumps to 79% appeared first on Coin Engineer.

Bitcoin Fall: Macro Headlines Are Not to Blame

Bitcoin’s slide to its lowest level in nearly eight months has frequently been linked to uncertainty stemming from the temporary U.S. government shutdown. Others have suggested that concerns about an overheated artificial intelligence sector have dampened risk appetite, spilling over into digital assets.

However, on-chain analyst Rational Root countered these claims in a recent podcast, stating that the decline had little connection to political or technological fear cycles. According to Root, the primary trigger was the excessive amount of futures leverage that had accumulated as Bitcoin hovered near its all-time high of $125,100 in October. The analyst emphasized that AI-related market anxiety had no measurable impact on the move either.

Supporting this view, analysts such as PlanB and PlanC noted that Nvidia’s record-breaking $57 billion in quarterly revenue undermines the argument that weakness in AI-linked stocks is dragging crypto lower.

Two Drivers Remain: Liquidity and the Bitcoin Four-Year Cycle

With other theories fading, analysts argue that only two credible macro factors remain: tightening global liquidity and the long-standing debate around Bitcoin’s four-year cycle.

PlanC highlighted that the traditional post-halving cycle may be weakening, especially as institutional participation continues to reshape market structure. Meanwhile, many analysts are watching indicators tied to the global money supply, particularly M2, which currently points to a contraction in liquidity. Strike CEO Jack Mallers has repeatedly described Bitcoin as the asset most sensitive to liquidity shifts, noting that it often reacts before traditional markets.

A Potential “Reset” for the Market

Despite recent turbulence, Rational Root believes the decline may ultimately be constructive. The analyst explained that the market has experienced three significant reset moments over the past three years, each of which paved the way for renewed upward movement. A more measured and structured recovery may now be possible.

Some market watchers also speculate that as the U.S. government returns to a normal legislative calendar, momentum for new crypto ETF approvals could accelerate heading into 2026. Still, analysts note that the list of meaningful short-term price drivers has narrowed considerably.

Also, you can freely share your thoughts and comments about the topic in the comment section. Additionally, please follow us on our Telegram, YouTube and Twitter channels for the latest news and updates.

The post What Is Driving Bitcoin Decline? Analysts Break Down the Cause appeared first on Coin Engineer.

Gold Hits Three-Week High

Spot gold climbed to $4,236.52 per ounce, marking its highest level since October 21. Analysts noted that the reopening of the U.S. government will accelerate the flow of key economic data, which could influence the Federal Reserve’s approach to monetary policy in the coming months.

According to Jigar Trivedi, Senior Research Analyst at Reliance Securities, “Gold remains supported by a weak dollar, expectations of further rate cuts, and sustained central bank buying. While a short-term consolidation phase may occur, the broader outlook stays positive. As long as real interest rates remain low, prices above $4,300 by year-end appear achievable.”

Market Eyes Potential Fed Rate Cut

A Reuters survey revealed that 80% of economists expect the Federal Reserve to implement another 25-basis-point rate cut in December — a slight uptick from the previous month’s projection.

Gold, which offers no yield, typically performs better in low-interest-rate environments and during periods of economic uncertainty. Since the beginning of the year, the metal has gained more than 60%, hitting an all-time high of $4,381.21 on October 20.

Currency Markets Show Volatility

In Japan, the yen weakened to record lows against the euro and a nine-month low against the dollar after the country’s new prime minister urged the central bank to exercise caution in future rate hikes. This modest decline in the dollar’s strength has provided additional support for gold prices.

Gold Finds Strength in Global Uncertainty

Analysts suggest that the resumption of government operations will bring clarity as long-delayed economic data begins to surface. However, expectations of continued monetary easing by the Fed, combined with ongoing geopolitical tensions, are expected to keep gold well-supported in the near term.

Once again, the precious metal is reaffirming its reputation as a safe haven amid global economic uncertainty — and investors appear keen to maintain their exposure as markets await further policy direction from central banks.

You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.

The post Trump Signs Deal to Reopen Government as Gold Extends Winning Streak appeared first on Coin Engineer.

Senate Advances Funding Bill to End Shutdown

On Monday, the U.S. Senate approved a temporary funding bill designed to keep the federal government operational through the end of January. After nearly ten hours of negotiations, Republican lawmakers secured the 60 votes required for passage, with support also coming from eight Democratic senators.

If the measure is approved by the House of Representatives, it will be forwarded to President Donald Trump for final approval, ultimately bringing an end to the longest government shutdown in U.S. history. Throughout the shutdown, more than one million federal workers went without pay, and many agencies operated with significantly reduced staff, according to CNN.

Key regulatory bodies tied to the crypto industry, including the Securities and Exchange Commission (SEC) and the Commodities Futures Trading Commission (CFTC), also experienced limitations. In addition, the aviation sector suffered major disruptions, as unpaid air traffic controllers led to staffing shortages and widespread flight delays and cancellations across the country.

Bitcoin Reclaims the $106,000 Level

Growing expectations over the weekend that the shutdown could be resolved contributed to a sharp swing in Bitcoin’s price. After dropping to $99,300 on Friday, BTC rebounded by 6.7%, climbing back to around $105,000.

Blockchain analytics firm Santiment reported that mentions of Bitcoin have surged across social platforms in recent days, indicating renewed investor confidence and rising market sentiment. Analysts suggest that a move toward $150,000 by the end of the year remains achievable, highlighting Bitcoin’s strengthening role as a digital store of value.

Meanwhile, the ability of more than four million Square merchants to accept Bitcoin payments with zero fees marks a significant milestone in mainstream adoption and reflects the growing integration of crypto into everyday financial activity.

You can join our Telegram channel to not miss the news and stay informed about the crypto world.

The post Government Shutdown Nears Resolution as Bitcoin (BTC) Rebounds appeared first on Coin Engineer.

Dollar Declines as Rate Cut Expectations Strengthen

Fresh private-sector employment figures point to a softening U.S. labor market, signaling that economic momentum may be slowing heading into the final months of the year. This shift has increased the probability of a Federal Reserve rate cut in December. According to Fed funds futures, markets are now pricing in roughly a 69% chance of a cut—up from around 60% in the prior session. The rising likelihood of a dovish pivot has dragged the dollar to its lowest level in a week.

Gold Surges Past $4,008 While Silver Extends Gains

Recent market data shows spot gold climbing to $4,008.145 per ounce, marking a 0.80% daily increase. Silver also continued its advance, with the price per ounce reaching $48.69305, up 1.37% on the day.

Despite volatility earlier in the week, gold prices have regained momentum, supported by firmer demand for safe assets. December gold futures remain on an upward trajectory as well. Although gold has retreated from its recent record peak of $4,381.21 reached on October 20, the renewed upward movement suggests investors are re-entering the market as uncertainty deepens.

Weak Labor Data Adds Pressure on the Federal Reserve

Sector-specific job declines, particularly in public and retail employment, pushed U.S. job numbers lower in October. Rising layoffs—linked to cost-cutting strategies and increasing AI integration—highlight broader economic challenges. Analysts note that the weakening labor backdrop reinforces pressure on the Federal Reserve to shift toward rate cuts, supporting the bullish tone in the gold market.

Government Shutdown Fuels Safe-Haven Interest

The prolonged government shutdown in the United States—now one of the longest in the nation’s history—has added another layer of uncertainty for financial markets. With political gridlock showing no signs of easing, investors are increasingly turning to gold as a protective hedge. Both economic indicators and the duration of the shutdown are expected to play key roles in shaping the near-term direction of gold and silver prices.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, please don’t forget to follow us on our Telegram  ,YouTube and Twitter channels for the latest news and updates instantly.

The post Gold Rises Again: Weak Employment and Rising Uncertainties appeared first on Coin Engineer.

Government Shutdown Slows Applications

The government shutdown is slowing down the SEC’s routine operations. Crypto ETF and other ETF applications cannot be processed except in emergencies due to the agency’s limited staff. Experts indicate that the announcement of new applications is likely to be delayed during this process.

SEC’s New Crypto ETF Standards Deemed Insufficient

The SEC recently approved general listing standards that will apply to Crypto ETF and other investment funds. These new regulations aim to make the application process much faster and more efficient in theory. The agency can now handle applications collectively based on specific criteria rather than evaluating each one individually.

You May Be Interested In: SEC Withdraws ETF Applications for These Altcoins!

However, the government shutdown is limiting the impact of these improvements. Since most of the SEC’s staff are on unpaid leave, the approval process has effectively slowed down. The new standards, which were expected to speed things up under normal circumstances, are not fully functioning under the current conditions. According to experts, the SEC will not be able to take any significant steps regarding crypto ETF applications until it returns to full capacity.

Time for Investors to Be Patient

Those wishing to invest in crypto ETFs and other ETF products will have to postpone their decisions due to the SEC’s limited staff. The agency will only respond to urgent email and phone requests. Therefore, some approvals may not be announced in the short term.

The post Crypto ETF Decisions Await the SEC appeared first on Coin Engineer.

US President Joe Biden approved the interim budget bill that will prevent the federal government’s shutdown. Biden, less than an hour before the end of the fiscal year 2023, signed the bill that would finance the federal government for 45 days, thus preventing the government shutdown.

You might like: The Latest Status in Cryptocurrencies

What is a Government Shutdown?

To explain in more detail, a government shutdown is when the government ceases or limits its activities for a certain period due to the inability to set or approve a budget. During this period, it affects many services and activities of the federal government, federal employees cannot go to work, and it restricts or stops certain public services. Government shutdowns often emerge due to political disagreements or gridlocks in budgeting processes. These types of situations can have significant effects on economic implications and access to public services.

How Does it Affect Prices?

Historically, government shutdowns have generally led to declines and uncertainties in the stock markets. For instance, the government shutdown in the US in 2013 caused losses in market values and short-term declines in economic activity. Similarly, cryptocurrencies have also generally lost value and experienced volatility during such periods. However, the impact of each situation varies over time.

The longest government shutdowns

The inability to reach a consensus on the government budget is causing concern within the crypto community. Considering that the sector is still growing and is sensitive to regulatory changes and government decisions, many industry observers and stakeholders are concerned about its impact on the crypto industry.

You can freely share your thoughts and comments about the topic in the comment section. Additionally, please don’t forget to follow us on our Telegram  ,YouTube and Twitter channels for the latest news.

The post What is Government Shutdown? How Does it Affect Prices? appeared first on Coin Engineer.