Govt Shutdown & Data Blackout Spark Optimism, Fed Rate Cut Looms
The prolonged government shutdown, now in its 22nd day, has created an unexpected silver lining for cryptocurrency markets. With key economic data delayed due to the shutdown, traders are increasingly betting on Federal Reserve rate cuts—a scenario historically favorable for risk assets like Bitcoin and altcoins.
Market sentiment suggests the data vacuum removes traditional headwinds for crypto valuations. Institutional flows into BTC and ETH derivatives have ticked upward across major exchanges, while liquidity providers anticipate volatility compression ahead of potential Fed action.