Numerous reports foretell an imminent U.S. government shutdown, given the anticipated failure of a spending bill to secure passage by Saturday evening — a measure meant to sustain operations till mid-November. On the cusp of this shutdown, bitcoin (BTC) has been on an ascent, catching the eye of many. Coinshares analyst Luke Nolan notes a buoyant sentiment among some traders, who view the government’s looming closure with a favorable lens.
Bitcoin Rides the Wave of Uncertainty as U.S. Braces for Government Shutdown
The U.S. government could shut down this weekend if Democrats and Republican policymakers can’t come to an agreement on spending. Currently, there’s a bill on the table that aims to extend the government’s pay until mid-November, but a number of Republicans and Kevin McCarthy, the current House of Representatives speaker, are not budging on negotiations.
The two chambers find themselves at a deadlock, and should the bipartisan proposal aimed at averting a shutdown fail to gain approval by midnight on Saturday, the government will be compelled to close its doors.
On Friday, Coinshares analyst Luke Nolan told Barron’s that certain market participants harbor the belief that the impending shutdown will serve as a bullish catalyst for bitcoin and the broader crypto economy.
“Some participants view the possible government shutdown as bullish for cryptocurrencies, as it plays directly into the narrative of non-sovereign currencies not being affected by government procedure,” Nolan explained to Barron’s contributor Jack Denton.
The possible shutdown is a large-scale reflection of the periodic dysfunction of due process, which fits well into the philosophical narrative of cryptocurrencies.
The previous hiatus that the U.S. government navigated spanned 35 days, lasting from December 2018 to January 2019. According to CNN, a “shutdown could have enormous impacts across the country, from air travel to clean drinking water. Many government operations would come to a halt, while services deemed ‘essential’ would continue.”
As the specter of a government shutdown looms closer, both equity markets and crypto assets have enjoyed an uptick in value. Bitcoin notably vaulted above the $27K threshold on September 29. “Despite large-scale equity weakness across most sectors … Bitcoin currently sits at a nine-day high, reclaiming an important push-and-pull level at $27,000,” Nolan conveyed to Denton.
What do you think about the traders who view the shutdown as a good thing for bitcoin? Share your thoughts and opinions about this subject in the comments section below.