Bitcoin Pulls Back To $112K Ahead Of Potential US Government Shutdown
A shutdown would freeze congressional work, including Senate consideration of the digital asset market structure bill.
Bitcoin’s (BTC) rally stalled in early trade on Tuesday, slipping to about $112,000 after briefly topping $114,800 in the prior session, as traders braced for another round of volatility ahead of a potential U.S. government shutdown.
The government is set to shut down at 12:01 a.m. ET Wednesday unless lawmakers reach a deal. A shutdown would freeze congressional work, including Senate consideration of the digital asset market structure bill, also called the CLARITY Act, and force the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to operate with skeleton staff. Vice President JD Vance said Monday, “I think we’re headed to a shutdown,” after negotiations ended without agreement.
While Bitcoin’s price edged 0.5% higher in the last 24 hours, it’s still trading 9% off its record high of more than $124,000 seen in August. On Stocktwits, retail sentiment around Bitcoin remained in ‘bullish’ territory amid ‘high’ levels of chatter over the past day.
Among major altcoins, Ethereum’s price rose around 0.6% and TRON (TRX) was up 1.2%, while others failed to maintain their respective runs. Solana (SOL) slipped 0.5%, while Ripple’s native token XRP (XRP) slid 0.6%. Meme token Dogecoin (DOGE) was down by 0.9% and Cardano (ADA) fell 1%. The total crypto market cap fell 0.3% in the last 24 hours and was back below $4 trillion.
Digital asset treasury (DAT) equities also fell in pre-market trade. The largest corporate holder of Bitcoin, Michael Saylor-backed Strategy (MSTR), fell around 2% and the largest publicly traded company with Ethereum on its balance sheet, Bitmine Immersive Technologies (BMNR), was down around 2% as well.
Bitcoin miners like Marathon Holdings (MARA) and Riot Platforms (RIOT) were also in the red. MARA’s stock fell as much as 2.2%, while RIOT’s stock slid 2.3%. Crypto exchange Coinbase (COIN) was down around 1.7%.
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