🚨 $100B Exits Crypto on U.S. Government Shutdown Risk

Rumors are spreading that the U.S. government may shut down — and many believe the crypto market is about to see a massive dump. Let me break down what’s actually happening.

The U.S. government must pass new funding before January 31. If politicians fail to reach an agreement, parts of the government could temporarily shut down. This uncertainty is what’s fueling market panic.

Why does a U.S. government shutdown affect crypto?

Crypto doesn’t move on news alone — it moves on liquidity.

The key term you need to understand is TGA (Treasury General Account). Think of it as the U.S. government’s main bank account.

When the TGA balance increases, money is pulled out of the financial system

Less liquidity = pressure on risk assets

Crypto is a high-risk asset → prices can drop

That’s why shutdown fears matter.

🔍 Possible Scenarios Ahead

1️⃣ Last-minute deal (No shutdown)

Funding passes in time

Markets may see a relief pump

Direction then depends purely on technical analysis

2️⃣ No deal (Shutdown begins)

Liquidity tightens further

Risk assets dump

Crypto could see a sharp sell-off

3️⃣ Deal happens, but liquidity stays tight

Markets remain slow and choppy

Least likely scenario

Historically, during the last U.S. government shutdown, Bitcoin and Ethereum both dipped hard. If history repeats, we could see a similar move.

🧠 What Should You Do?

🔴 Futures Traders

Avoid high leverage

Don’t use tight stop losses

Shutdown headlines can cause sudden wicks

🟢 Spot Traders

Stay patient

A shutdown could offer excellent buy-the-dip opportunities

👀 Coins to Watch

If we get a strong dip:

SOL → Buy limits below $120

ETH → Below $2,000

XRP → Below $1.20