The ongoing U.S. government shutdown is exacerbating volatility in the cryptocurrency markets, as key economic data releases from the Treasury are delayed and federal support for liquidity-sensitive sectors is disrupted. This has led to increased uncertainty, with furloughs and halted services in tourism and agriculture sectors further compounding the situation. Major market indices, including the S&P 500 and Nasdaq, have experienced significant fluctuations, reflecting the broader market's response to the delayed data and geopolitical tensions. These include rare earth export controls and escalating U.S.-China tariff threats. According to Scott Bessent, the shutdown is impacting the real economy and elevating risk premiums for high-risk assets.