- Longest U.S. shutdown sparks economic strain and crypto market uncertainty.
- Analysts warn extended closure could weaken consumer spending and confidence.
- Crypto markets show slight recovery amid political turmoil and tariff tensions.
The ongoing U.S. government shutdown has surpassed a month, marking the longest closure in the nation’s history. It has disrupted several sectors, from the economy to financial markets, while sparking unease among investors and policymakers.
Analysts warn that the extended closure is straining the economy at a critical time. According to Bloomberg, the halt is costing between $10 billion and $30 billion weekly. Unlike previous shutdowns that caused short-term disruptions, this one threatens long-term economic stability amid high inflation and rising unemployment concerns.
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Rising Economic Costs and Market Pressure
Traders on Polymarket expect the shutdown to stretch into late November, with a 56 percent probability it will last beyond November 16. The delay of major economic reports has heightened uncertainty, making it harder for the Federal Reserve and financial markets to respond effectively.
White House economic adviser Kevin Hassett has admitted the damage is worse than initially projected. Economists also fear that extending the shutdown into the Thanksgiving period could weaken consumer spending during the vital holiday season, adding more pressure on households already facing financial stress.
Meanwhile, the crypto market has not been spared. The deadlock has slowed progress on ETF approvals and stalled movement on the market structure bill. Additionally, geopolitical tension, coupled with tariff threats from President Donald Trump, has contributed to volatility across digital assets.
Crypto Market Finds Temporary Relief
Despite the ongoing disruptions, digital assets have shown brief signs of recovery. The global crypto market capitalization rose by 2.7 percent in the past 24 hours, reaching $3.55 trillion. However, analysts remain cautious about the sustainability of this rebound.
According to market expert Alex Krüger, traders are likely to maintain a defensive stance until the government resumes operations. He believes a short-term rally could follow the resolution, with Bitcoin possibly gaining over 5 percent within two days. Krüger also notes that tax-related sell-offs in December might weigh on prices, though a Supreme Court ruling on tariffs could trigger a sharp upward move if it goes against Trump’s position.
Looking ahead, analysts foresee a more optimistic first half of 2026, supported by potential policy easing. Yet, the immediate focus remains on whether Washington can break its political deadlock before more damage spreads through the economy and markets.
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