Bitcoin is down by 2.1% in the past 24 hours, and its latest decline has come at a moment when many traders expected the opposite. The US government shutdown is already in the process of winding down after weeks of uncertainty, yet the prices of Bitcoin and Ethereum have continued to drift lower and are under pressure.
The cryptocurrency market’s inability to rebound notably has led to active debate among traders on X. One of the most vocal views came from a popular trader known as The White Whale, whose remarks express a growing sense of frustration across the crypto community.
The Shutdown Isn’t Really Over
The White Whale argument is that the crypto market’s price action is yet to rebound because the government shutdown is not truly over. The analyst insinuates that the apparent resolution to the shutdown is far less reassuring than it looks.
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In his view, the government only approved short-term funding so that federal workers get paid through the holiday period, but this leaves the underlying issue unresolved. The temporary nature of the fix means the same uncertainty could come back in just a few weeks, which he believes is preventing markets from reacting positively.
The discussion attracted instant responses, including a contrasting view from another commentator, Nara Sumas. Sumas dismissed the idea that the shutdown is the main factor behind price action, noting that markets barely reacted when the shutdown began.
The point is that the macro crypto environment is already heavy with weak sentiment, and there is bad news about the markets every day. Therefore, the crypto market’s decline has more to do with those structural conditions than with government drama. Furthermore, the brief uptick earlier in the week was due to exuberance and not anything based on fundamentals.
Despite the pushback, The White Whale doubled down on his stance. He maintained that markets do react to shutdowns, but not immediately. Therefore, the delayed downturn is a reaction after it became apparent to investors that the situation wasn’t going to be resolved quickly.
What’s Next For The Crypto Market?
The path ahead for the crypto market is tied to whether confidence can return after weeks of choppy price action and sentiment. The exchange between traders on X, like the one highlighted above, shows that many are weighing the impact of the temporary government funding deal against the deeper macro issues that have shaped this downturn.
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Even though the shutdown is winding down, the uncertainty around what happens next is notable, especially for investors who rely on clear policy direction before taking on additional risk.
At the time of writing, Bitcoin is trading at $102,900, down by 2% in the past 24 hours. At the same time, XRP is witnessing a resurgence in interest, as investors are now awaiting the possible launch of a US-based Spot XRP ETF this week.
Featured image from Pixabay, chart from Tradingview.com
