In a surprising turn, Bitcoin’s (BTC) price tumbled below $27,000, even as other cryptocurrencies saw gains. This unexpected development comes ahead of a potential US government shutdown, raising concerns about its impact on cryptocurrency prices.
Bitcoin was trading at $26,800 on Friday afternoon, reflecting a 3.2% return for the month. However, this marks a 1.6% decline from its brief high of $27,400 on Thursday.
Meanwhile, Ripple’s XRP, Solana’s SOL, and Tron’s native token TRON all posted gains between 3% and 5%, outperforming the broader digital asset market. The CoinDesk Market Index (CMI) was down 0.5%.
Noelle Acheson, a macro analyst, stated on Friday, “The oppressive macro uncertainty is still a major headwind.” She also noted that the possibility of a government shutdown adds to the financial instability.
Despite the bleak outlook, Asgard Markets, an advisory firm, mentioned in their Friday market report that the S&P 500 has risen 55% of the time during the 21 past government shutdowns, generating an average return of 0.3%.
However, the potential government shutdown could significantly impede regulatory decisions, as the staff of the U.S. Securities and Exchange Commission (SEC) is expected to be massively reduced, as per NYDIG, a digital asset investment firm.
Against this backdrop, Bitcoin’s price action will be closely watched as Q4 unfolds, with October historically being a bullish month for the cryptocurrency.
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