Will Crypto Markets Rebound When the US Government Shutdown Ends?
Crypto markets are expected to rebound when the US government shutdown ends due to the subsequent return of frozen liquidity.Summary
The prolonged US government shutdown, which began on October 1, 2025, has negatively impacted financial markets by draining liquidity, primarily through the swelling of the Treasury General Account (TGA) to over $850 billion. This liquidity drain, described as a "stealth QE in reverse," has caused Bitcoin to slide approximately 5%, mirroring the 8% reduction in circulating dollar liquidity. Analysts, including Arthur Hayes, anticipate a strong recovery in crypto markets once the shutdown ends, as government spending and mechanisms like the Standing Repo Facility will reintroduce cash flow. Bitcoin, trading as a liquidity-sensitive risk asset, is expected to rally toward the $110,000–$115,000 range in the next quarter, supported by growing expectations for early 2026 rate cuts and rising global liquidity from other regions.
(Source：BeInCrypto)