US Shutdown Risk at 66% — Crypto Faces Turbulence as Deadline Nears

The probability of a U.S. government shutdown has surged to 66% on Polymarket, signaling heightened investor anxiety. Market analysts anticipate short-term volatility for risk assets, including cryptocurrencies, with potential recovery opportunities once liquidity stabilizes.

Budget gridlock between Congress and the WHITE House threatens to trigger the first federal shutdown since the 35-day stalemate of 2018-2019. This comes amid persistent inflation and restrictive monetary policy, creating a perfect storm for economic uncertainty.

Historical patterns suggest shutdowns depress market sentiment across equities and digital assets. crypto markets face dual pressure: immediate price reactions and delayed regulatory progress as policymakers divert attention to budgetary fires.