U.S. Senate Fails to Pass Stopgap Funding Bill Again

The U.S. Senate failed, for the 10th time, to advance the Republican stopgap funding bill on October 16, continuing the government shutdown’s impact on fiscal negotiations.

This prolonged fiscal uncertainty may subtly affect crypto markets, which remain stable despite potential macroeconomic volatility.

Senate Vote Extends Fiscal Gridlock Impacting Markets

The U.S. Senate’s recent failure to pass the Republican-backed stopgap funding bill marks the tenth consecutive vote since the government shutdown. The bill needed 60 votes for approval but ended with a 51-45 result. This event contributes to ongoing fiscal uncertainty in the United States, raising concerns about potential market volatility as investors gauge implications on economic stability.

As the stopgap funding proposal remains stalled, the prospect of fiscal stalling is heightened, possibly affecting market confidence and investor positioning. However, the bill itself does not specifically target the crypto markets or introduce new fiscal measures impacting digital assets. Nonetheless, the potential for macroeconomic disruption may expose financial markets to short-term instability.

No direct remarks have emerged from key cryptocurrency leaders like Vitalik Buterin or CZ of Binance regarding the Senate vote’s specific effects on the crypto realm. Such events tend not to impact cryptocurrencies directly, though risk-off sentiment in broader markets could potentially trickle down into digital assets. According to Arthur Hayes, Co-founder of BitMEX, “From 2009 to 2013, the Federal Reserve initiated quantitative easing (QE) for the first time, along with credit stimulus in China, which together propelled the birth of Bitcoin and its first bull market… Entering 2025, Hayes believes the world is returning to a ‘loose narrative.’ The U.S. Treasury is releasing trillions of dollars in liquidity by issuing short-term government bonds, while the Federal Reserve is forced to restart interest rate cuts against a backdrop of high inflation… Against the backdrop of monetary easing in both major economies, funds are bound to return to the risk asset market.“

Bitcoin Holds Steady Despite Political and Fiscal Uncertainty

Did you know? Past U.S. shutdowns have triggered short-term dips in cryptocurrency markets, but liquidity stimuli often reverse these trends. This pattern underscores how macroeconomic events can fluctuate investor sentiment and market behavior.

According to CoinMarketCap, Bitcoin (BTC) is trading at $107,991.73, reflecting a -2.77% change over 24 hours and a -10.93% decline over the past week. BTC’s market cap is $2.15 trillion with trading volume at $77.27 billion in the last 24 hours. Despite recent fiscal uncertainties, Bitcoin maintains a strong market presence with circulating supply close to its 21 million max cap.

The Coincu research team indicates that fiscal tension in the U.S. may extend uncertainty across financial markets, affecting liquidity. However, historical data suggests resilience within the crypto sector amidst broader fiscal shifts, even if temporarily shaken by macroeconomic developments.