Shutdown Deal Near; Bitcoin Falls, Markets Jitter Today

• US Senate leaders recently reached a bipartisan deal to fund agencies, even though final votes are still pending.
• Bitcoin dropped to a nine-month low of $81,000 as investors fled riskier assets for safer havens.
• Meanwhile, precious metals like silver entered bear market territory while gold fluctuated near $5,100 per ounce.

Washington leaders are now racing against time to prevent yet another government shutdown that could shake the economy. 

President Trump and Senate leaders recently announced a deal on Thursday evening. 

According to reports, this deal could help keep federal agencies running beyond the Friday midnight deadline.

Senate Negotiations Stall Before the Shutdown Deadline

Lawmakers have spent the week arguing over the Department of Homeland Security (DHS) budget. So far, there have been disagreements about immigration enforcement policy, and President Trump has voiced his support for the bipartisan deal. 

He stated that another government shutdown is the only thing that could slow the country down. He has also been working with Congress to make sure the necessary funding remains in place.

Even with the President’s blessing, the Senate faced unexpected delays on Thursday night, after internal disagreements over phone record privacy and House-passed provisions slowed the process. 

At the end of the day, leadership sent senators home late in the evening without a scheduled vote, and they hope to return Friday to pass the final bill. 

If they fail, a brief funding lapse could occur over the weekend and this could shake the crypto market.

Bitcoin and Liquidity Jitters Hit Digital Assets

The threat of a government shutdown has already left a mark on the crypto market and Bitcoin recently plunged to a nine-month low of $81,000. 

Interestingly, this decline coincided with nearly $1 billion in outflows from spot Bitcoin and Ether ETFs. Market analysts say that this drop is not due to a loss of faith in crypto. 

Instead, was likely due to a tightening of US dollar liquidity and the Treasury General Account has even recently increased by roughly $300 billion.

Risk assets (like Bitcoin) usually suffer when the government raises cash balances before a spending pause, and analysts say that crypto is usually the first to react to these changes. 

Interestingly, on-chain data shows that whale wallets have been inactive. This indicates that major holders are not panicking, and they might even see the current price swings as a temporary event, rather than a permanent trend change.

Why Commodity Markets Are Volatile

Precious metals have seen extreme price moves lately as investors search for safety. 

Gold recently surged past $5,100 per ounce earlier in the month, but recently declined in value below $5,000 before recovering slightly. 

Silver too has faced an even tougher road after officially entering bear market territory when it fell 22% from its recent highs. These movements are partly due to President Trump’s recent foreign policy signals.

The administration recently declared a national emergency over Cuba and signs of a possible military action against Iran have kept the world on alert. 

So far, all of these headlines are creating a “safe haven” demand that usually helps gold over Bitcoin.

So far, time will tell what happens next with Bitcoin, and whether a recovery can happen sometime soon.