JuGaRa

Rumors are that the U.S. government is going to shut down, and the crypto market is going to dump massively. Let me tell you the truth.
There are a lot of rumors in the market that the U.S. government is going to shut down and people are panicking. Now let me explain what’s actually happening.

The U.S. government needs to pass funding again before the deadline of 31st January. Now, if the politicians don’t agree in time, some parts of the government can temporarily shut down.

So now the big question is: why would a U.S. government shutdown affect the crypto market?

The answer is simple. The crypto market does not only move on news it moves on liquidity as well.

The keyword you need to understand is TGA (Treasury General Account), which is basically the U.S. government’s bank account.

Now think of it like this: when the TGA goes up or in simple words, when the U.S. government’s “bank account” needs to go up the money is basically sucked out of the system.

And how does the TGA go up? By pulling money from the system. And whenever money gets pulled out from the system, riskier assets usually dump. Crypto is a risky asset, and that’s why the crypto market can get hit and dump.

Now let’s discuss the possibilities. There are three major possibilities that can happen right now:

A last-minute deal happens and the funding gets passed, and there is no shutdown.
In that case, we might see a relief pump in the markets, and then the direction will be decided purely on technical analysis.

No deal happens and the shutdown starts.
In that case, we can see a big dump in the markets, including crypto.

A deal happens, but liquidity is still tight and the market stays slow.
This one has the least chances.

If we look at the past, last time a shutdown happened, BTC and Ethereum both took a big dip. If that happens again, we can expect a similar pattern in Bitcoin and Ethereum.

So what to do now?

If you are a futures trader: avoid high leverage and don’t keep tight stop losses (shutdown headlines can cause sudden wicks).

If you are a spot trader: you can wait for the market to dip if a shutdown does happen. It can give you a very good opportunity to buy at cheaper prices.

Three coins I suggest to watch are:
👉Solana (SOL)
👉XRP
👉Ethereum (ETH)

If we get a strong dip:
$SOL : limit orders below $120
$ETH : below $2,000
$XRP : below $1.2
Until then, I’ll see you again. Thank you so much for following Pandatraders. Stay blessed, my pandas.

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