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Rising political uncertainty in the US has once again negatively impacted the cryptocurrency market by fueling short-term risk aversion.
Accordingly, Bitcoin (BTC) fell due to increasing concerns about a potential US government shutdown.
In the forecasting markets, the probability of another US government shutdown has risen to 78%, and with the budget deadline approaching January 30, 2026, political risk is once again impacting short-term market sentiment as bipartisan negotiations stall.
At this point, Bitcoin fell below $88,000 due to a general risk-aversion trend in the crypto market.
Analysts speaking to The Block cited funding uncertainty and the political impasse, which have increased the risk of a US government shutdown, as the main pressure point on risky assets.
At this point, Senate Democrats did not explicitly state that they would block the passage of the Department of Homeland Security (DHS) budget bill. The political uncertainty caused by these statements directly triggered the decline.
Senate Minority Leader Chuck Schumer significantly increased the risk of a government shutdown by stating, “I cannot support a DHS budget bill that lacks safeguards to control Immigration and Customs Enforcement (ICE).”
Bitcoin is Negatively Affected!
Presto Research analyst Rick Maeda explained that the recent BTC drop was due to macroeconomic factors such as political uncertainty in the US, rather than problems specific to cryptocurrencies.
He stated that the US Congress is currently facing a budget impasse and political conflict, which increases the likelihood of a shutdown and triggers the decline.
Kronos Research analyst Vincent Liu shared the same view, stating that the market is pricing in the risk of a US government shutdown and that the probability of a closure at Polymarket has risen to 75%. Maeda and Liu argued similarly, stating that macroeconomic developments will continue to be the key determining factor for Bitcoin and altcoins in the coming period.
At this point, investors will be closely watching this week’s US Federal Reserve interest rate decision and US PPI data to glean clues about the policy outlook and inflation.
Maeda concluded by saying, “Especially in the cryptocurrency market, the stabilization of ETF flows and BTC’s ability to maintain its recent support levels are important short-term signals.”
Bitcoin continues to trade at $88,000.
Gold and Silver Hit Record Highs While Bitcoin Falls!
Bitcoin continued its decline over the weekend as the risk of a US government shutdown increased. At this point, the BTC price fell below $88,000, while gold and silver reached new record highs.
According to the data, for the first time in history, an ounce of gold managed to surpass $5,000, while an ounce of silver exceeded $107.
Market analyst Ross Norman, speaking to Reuters, said he expects gold prices to rise to $6,400 per ounce this year and average around $5,375.
*This is not investment advice.
coindesk.com
