Crypto market expert Crypto Rover has warned of an 80% chance of a US government shutdown by January 31, 2026, marking a significant increase from the previous day's estimate of 10-15%. The heightened risk stems from escalating political deadlock in Washington over federal spending priorities, with Democrats opposing the current funding bill unless certain provisions are removed, and Republicans showing little willingness to compromise.
The potential shutdown poses a serious liquidity risk to the crypto sector. A shutdown would likely lead the US Treasury to rebuild its Treasury General Account, effectively withdrawing cash from financial markets and reducing liquidity. This could exacerbate existing market vulnerabilities, as liquidity conditions are already strained and investor confidence remains fragile. Analysts caution that a liquidity drain could lead to significant declines in digital asset prices.
Crypto Markets Face 80% Risk of US Government Shutdown by January 31
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