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3 hours ago
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BEARISH 📉 : Bitcoin drops amid US economic worries and potential shutdown risks

Market Update: Bitcoin (BTC) has resumed its decline, hovering around $65,645 after failing to surpass the $70,000 resistance. This downturn extends to major cryptocurrencies, including Ethereum (ETH), XRP, and Solana (SOL).

Economic Concerns

  • The decline is linked to weak US economic data and the risk of a government shutdown.
  • US home sales dropped 8.4% last month, the steepest in nearly four years.
  • Initial jobless claims exceeded expectations, indicating potential labor market weakness.
  • These indicators suggest a slowing economy, raising recession concerns.

Bitcoin

Government Shutdown Threat

  • The probability of a government shutdown this week is at 96%.
  • A shutdown could tighten liquidity, impacting financial markets and cryptocurrencies.
  • The recent increase in the US debt ceiling to $41.1 trillion allows more negotiation time but may prolong the shutdown risk.

Market Risks

  • Technical analysts warn that a shutdown poses a major liquidity risk.
  • The economic backdrop includes weakening labor conditions, reduced retail spending, and rising bankruptcies.
  • An extended shutdown could exacerbate liquidity issues, further pressuring equities and cryptocurrencies like Bitcoin.