Ether Drops Over 3% as U.S. Government Shutdown Risks Increase
Ether (ETH) and other major cryptocurrencies experienced declines during Thursday's Asian trading hours as the probability of a U.S. government shutdown reached record highs on Polymarket.
- The likelihood of a "U.S. government shutdown in 2025" is priced at 77%, with a 63% probability by October 1.
- The White House is preparing for potential job cuts if a spending bill isn't passed soon.
- The government may run out of funds by late September, pending Congress approval of a short-term funding measure or full-year bills.
Cryptocurrency Market Impact
- Ether fell over 3% in Asia, nearing $4,000, while Bitcoin (BTC) dropped over 1% to below $112,000.
- Other tokens such as [XRP](https://holder.io/coins/xrp/), [SOL](https://holder.io/coins/sol/), and [DOGE](https://holder.io/coins/doge/) decreased by 2.6% to 3%.
- The CoinDesk 20 Index dropped 2% to 3,940 points.
The market sentiment may be affected by concerns over a potential government shutdown and recent comments from San Francisco Fed President Mary Daly on rate cuts.
- The Fed recently cut rates by 25 basis points and hinted at two more cuts this year.
- Traders are awaiting Friday's PCE data, the Fed's preferred inflation measure, which could impact future rate expectations.