Bitcoin slides near $87,000 as US government shutdown fears weigh on crypto

Bitcoin extended its recent slide, falling near $87,000, while Ethereum also dropped, as a broad macro risk-off impulse affected crypto markets. Analysts attribute this pressure to rising uncertainty over a potential US government shutdown stemming from political deadlock in Congress regarding funding bills. This political risk has increased market wariness, with the probability of a shutdown estimated at 75% on Polymarket. Institutional sentiment reflects caution, as U.S. spot bitcoin ETFs recorded their worst week since February 2025 with $1.33 billion in net outflows. While some selective buying in crypto-linked equities, like Ark Invest's purchases of Coinbase shares, suggests long-term conviction, overall ETF flow data indicates softer institutional demand at the margin. Future market direction will depend on macro developments, including the Federal Reserve's interest rate decision and PPI data, alongside ETF flow stabilization.

(Source：The Block)