Key Insights:
- Bitcoin price stabilized near $84,000 despite a shutdown related to US government funding that officially started on Saturday morning.
- Market liquidity became thin over the weekend as traders waited for the House of Representatives to vote on a Senate-approved funding deal this Monday.
- Prediction platforms like Polymarket and Kalshi are also seeing intense activity as users debate the partial shutdown.
The crypto market has been in gridlock since midnight on Friday, after the United States officially entered a partial government shutdown. Bitcoin (BTC) price also took a hit, erasing much of its recent gains.
This event came after a missed funding deadline by lawmakers, which created serious tension over international financial markets.
While many expected a heavy selloff, the response from major tokens has been surprisingly steady. So far, traders are now watching Washington to see how long this funding gap will last.
Bitcoin (BTC) Price Holds Steady Despite Partial US Government Shutdown
Bitcoin price showed signs of stability after having a particularly volatile week. The price of BTC USD hovered around $83,559 on Friday, before moving slightly higher toward $84,000 on Saturday morning.
This recovery followed a painful Thursday crash that saw the asset tumble to a multi-month low of $81,000. Despite the daily gains, the weekly picture is still challenging for investors.
Bitcoin price has lost roughly 6.8% of its value over the past seven days, according to price charts.
Last week, Senate leaders also successfully passed a package of five funding bills with a 71-29 vote. This package includes a two-week stopgap measure, which allows lawmakers to settle disputes over the Department of Homeland Security budget.
However, the House of Representatives will not vote on this final version until Monday.
In other words, the federal government is technically shut down for the second time during the current presidency.
Market Liquidity and the Weekend Stress Test
Weekend trading in the crypto space tends to happen with lower volume. However, investors are keeping close track of the Bitcoin (BTC) price now.
This thin liquidity can worsen price swings when breaking news hits the tape and analysts expect the current shutdown headline to act more as a stress test for market sentiment than a direct economic blow.
Many buyers are currently hesitant to step into a messy news cycle, and this caution pushes traders toward smaller position sizes and warier dip-buying strategies.
Russell Vought, the Director of the US Office of Management and Budget, instructed agency heads to prepare for orderly shutdown activities.
He also expressed hope that this lapse will remain short, and House Speaker Mike Johnson also noted that the chamber expects to pass the Senate-approved deal on Monday.
Crypto Market Keeps Track of the Bitcoin Price
Users on Polymarket and Kalshi spent the last 24 hours debating the exact wording of shutdown contracts.
According to these users, a government can be legally “shut” at 12:01 a.m. on paper while operations appear normal to the public for several days. This gap between legal status and real-world effects thus creates a complicated environment for settlement rules.
So far, while Bitcoin (BTC) price stayed relatively calm, several altcoins managed to chart strong gains. Privacy-focused XMR rose by 11%, while CC and HYPE grew by 8.5% and 6%, respectively.
Even SOL managed a 4% increase despite the general atmosphere. This divergence indicates that some investors are rotating capital into specific projects, rather than exiting the market entirely.
Ethereum and XRP did not share the same luck as the smaller tokens.
Ethereum price sat near $2,686 and marked a 9% decline over the week. XRP also changed hands near $1.72 and is down close to 10% over the last seven days.
Bitcoin price and these major assets tend to follow the “risk-off” sentiment more closely than niche coins. Having said that, when the government hits a technical lapse, traditional investors tend to pull back from the most liquid digital assets first.