Bitcoin got hammered on this Wednesday, dropping 3.6% from around $106,316 down to $102,803, which is pretty brutal considering stocks and gold were actually climbing. The Dow jumped 423 points while gold hit over $4,200, but Bitcoin couldn’t catch a bid anywhere.
The House is voting today on ending this record-long government shutdown, and investors are rotating money into traditional assets that seem safer right now. Bitcoin’s basically getting left behind as people move into stocks with clearer exposure to economic policy changes.
Some analysts think Bitcoin might be bottoming out, though. The Net Unrealized Profit ratio fell to 0.476, which historically signals market bottoms. When it hit similar levels in 2024, Bitcoin bounced 15-25% the next month. So maybe this is actually a buying opportunity if you’re into that kind of thing.
The shutdown has been absolutely brutal; nearly 900 flights were canceled today, federal workers are not getting paid, and millions of people are affected. Speaker Mike Johnson is trying to push the bill through his narrow Republican majority, though it’s not guaranteed.
Markets are also stressing about the Fed’s December meeting. Traders think there’s a 72% chance of a quarter-point rate cut, but Powell’s been pretty cautious, saying the shutdown has basically left them “driving in the fog” without proper economic data to make good decisions.
Conclusion
Bitcoin plunged amid a U.S. government shutdown and investor shift to safer assets, but historical indicators hint at a potential rebound as market sentiment nears the bottom.
Also Read: Crypto Market Crashes
