Trump Links Government Shutdown to Stock Market Impact

U.S. President Trump announced that the ongoing government shutdown, as of November 5, 2025, is impacting the stock market, despite recent all-time highs.

This situation has affected liquidity-sensitive assets like Bitcoin, leading to substantial market volatility and significant crypto liquidations.

Government Shutdown Drains $700 Billion from Markets

Market strategists anticipate a liquidity surge post-shutdown, with experts such as former Treasury Secretary Larry Summers suggesting that the Fed overreach concerns are not critical. “Complaints about Fed overreach are not even in the top 100 issues facing the United States,” remarked Summers. Institutional leaders like Goldman Sachs and Citigroup project recovery contingent upon resumed fiscal operations.

Did you know? Since the government shutdown began, Bitcoin witnessed a significant increase in valuation following several past U.S. fiscal crises, indicating potential recoveries linked to resumed government spending.

As per CoinMarketCap, Bitcoin (BTC) is currently priced at $104,318.56 and holds a market cap of $2.08 trillion. Over the past 24 hours, Bitcoin’s value increased by 3.28%, while experiencing a 5.47% decline over seven days. The trading volume reached $95.58 billion with substantial market dominance. Historical data reflects a 10.76% decrease across 90 days.

Bitcoin Fluctuations Reflect U.S. Fiscal Uncertainties

Did you know? Since the government shutdown began, Bitcoin witnessed a significant increase in valuation following several past U.S. fiscal crises, indicating potential recoveries linked to resumed government spending.

The Coincu research team suggests that once fiscal operations restart, financial markets could experience volatility. Experts predict a recovery in risk assets, assuming the Federal Reserve manages political pressure to maintain fiscal stability.

The Coincu research team suggests that once fiscal operations restart, financial markets could experience volatility. Experts predict a recovery in risk assets, assuming the Federal Reserve manages political pressure to maintain fiscal stability.