The Paris Stock Exchange (CAC 40) closed slightly higher on October 1, 2025, as investors cautiously monitored the looming threat of a US government shutdown. While the French market showed resilience, global uncertainty weighed on sentiment. This article breaks down the day’s trading dynamics, the implications of a US shutdown, and historical parallels—plus insights from the BTCC team on how
crypto markets might react.
*Source: DepositPhotos*
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### How Did the CAC 40 Perform on October 1, 2025?
The CAC 40 inched up by 0.3% to 7,450 points, a modest gain overshadowed by thin trading volumes. Energy and healthcare stocks led the charge, while tech shares lagged due to profit-taking. Analysts attributed the tepid rally to investors hedging bets ahead of the US budget deadline. "It’s like watching a slow-motion tennis match," quipped one trader. "Everyone’s waiting to see if Washington serves up a shutdown."
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### Why Is the US Shutdown Threat Rattling Markets?
A US government shutdown—triggered by Congress failing to pass a budget—could freeze federal spending, delay economic data releases, and dent consumer confidence. Historically, shutdowns have caused short-term volatility but limited long-term damage. The 2018-2019 shutdown, for instance, saw the S&P 500 drop 2% before rebounding. This time, crypto traders are eyeing
bitcoin as a potential hedge; BTCC data shows a 15% surge in BTC futures open interest last week.
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### How Are European Markets Reacting?
Germany’s DAX and the UK’s FTSE 100 mirrored Paris’s cautious optimism, rising 0.2% and 0.1%, respectively. The euro held steady at $1.08, though ECB President Lagarde’s hint at "higher-for-longer" rates added pressure. "Europe’s playing defense," noted a BTCC analyst. "If the shutdown drags on, expect capital to flow into gold and stablecoins."
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### Could Crypto Benefit from Political Gridlock?
Crypto markets often thrive in uncertainty. During the 2023 debt-ceiling crisis, Bitcoin jumped 12% in two weeks. This time, BTCC’s derivatives dashboard shows traders stacking BTC puts—a bet on volatility. "Shutdowns are like crypto’s caffeine," joked an anonymous trader. "Short-term jitters, long-term indifference."
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### FAQ: Your Burning Questions Answered
Market Insights
What’s the worst-case scenario for the CAC 40 if the US shuts down?
A prolonged shutdown could drag the index down 3-5% as export demand wobbles. But French luxury stocks (LVMH, Hermès) might cushion the blow—their global clientele doesn’t care about DC drama.
Is now a good time to buy crypto?
This article does not constitute investment advice. That said, BTCC’s order books show whales accumulating ethereum below $3,000—a level last seen in June 2025.
