U.S. Government Shutdown Looms as Senate Passes Spending Bill

The White House directed U.S. government agencies to prepare for a shutdown on January 31 as Congress failed to pass the necessary funding legislation in time.

The impending shutdown affects major federal agencies, potentially disrupting services until Congress finalizes funding, though no direct impact on cryptocurrencies or digital assets is noted.

Senate Passes Spending Bill; Shutdown Preparations Underway

Russ Vought, the Director of the White House Office of Management and Budget, informed department heads to execute orderly shutdown plans as Congress missed the funding deadline. Agencies including the Department of Defense and Treasury are affected.

Immediate implications include potential operational disruptions across various federal departments, pending the passage of the Senate’s spending bill in the House on Monday, February 2.

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“As it is now clear that Congress will not complete its work before the expiration of appropriations, affected agencies should now execute plans for an orderly shutdown,” said Russ Vought.

Market and political reactions are focused on potential disruptions and economic implications. Mike Johnson emphasized the urgency, highlighting that the House would likely use a fast-track vote to expedite proceedings.

Bitcoin Down 23% in 90 Days Amid Economic Uncertainty

Did you know? Government shutdowns typically disrupt federal programs significantly, with 2019’s 35-day shutdown marking the longest in U.S. history.

According to CoinMarketCap, Bitcoin (BTC) is valued at $84,004.90, with a market cap of $1.68 trillion. Trading volume fell by 19.54% over 24 hours, and BTC’s market dominance is 59.12%. Notably, BTC has seen a 23.59% decline over 90 days.

Coincu’s research suggests that such government shutdowns could cause financial strain, particularly impacting industry reliance on federal programs. Experts note no significant direct connection to cryptocurrencies, but caution about potential spillover effects on market confidence.