The ongoing U.S. government shutdown, now in its 36th day, has led to a significant global market sell-off, impacting major assets including Bitcoin and Nasdaq. The Treasury General Account has increased to over $1 trillion, effectively draining liquidity from the financial system, akin to aggressive Federal Reserve rate hikes.
This liquidity crunch has resulted in a surge in overnight borrowing rates and rising defaults in commercial real estate and auto loans, indicating a worsening economic crisis. Analysts remain divided on the future, with some forecasting extended economic challenges, while others expect a potential liquidity recovery.
U.S. Government Shutdown Triggers Global Market Sell-Off, Bitcoin Falls
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