Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Will crypto market recover as Trump adviser says US government shutdown nears end?Altcoin ETF progress to resume

Will crypto market recover as Trump adviser says US government shutdown nears end?Altcoin ETF progress to resume

Crypto.NewsCrypto.News2025/10/20 16:00
By:By Rony RoyEdited by Anna Akopian

White House economic advisor Kevin Hassett has hinted that the ongoing U.S. government shutdown, which had weighed on crypto market sentiment over the past weeks, could end soon.

Summary
  • White House officials say the ongoing government shutdown could end this week.
  • Major cryptocurrencies have continued trending downwards amid macro uncertainty.

During an appearance on CNBC’s Squawk Box, Hassett said that the shutdown is “likely to end sometime this week.” However, he has also warned that failure to reach an agreement could prompt the Trump administration to take “stronger measures” to bring Democrats back to the negotiating table

At the time of writing, the total cryptocurrency market cap had dropped over 3% in the past 24 hours, hovering just above the $3.7 trillion mark. Bitcoin was down over 3.2%, while major altcoins like Ethereum (ETH), BNB (BNB), Solana (SOL), and XRP (XRP) posted losses between 1-5% on the day.

Much of this drawdown was due to investor caution as markets were bracing for the first inflation data release after the U.S. government shut down , which was in its third week, and the longest in U.S. history. 

However, with the possibility that the current shutdown may end soon, markets are expected to recover for a number of reasons. 

Altcoin ETF progress to resume

One of the main reasons why crypto markets could rally after the government shutdown ends is that the U.S. Securities and Exchange Commission, which hasn’t been operating in full capacity, will once again start reviewing applications for spot crypto exchange-traded funds.

Before the Oct. 1 shutdown, the commission was expected to deliver a final decision regarding a number of altcoin ETFs, including Solana, XRP, and Litecoin, among others. Experts believe the odds of approval are almost 100% especially since the SEC had adopted generic listing standards for crypto-linked commodity trusts.

Back in September markets were rallying on this narrative, and that sentiment could return once regulatory progress resumes.

Key economic data to be released

The Federal Reserve is expected to hold its highly anticipated policy meeting next week when it would decide wether it plans to move on with further ratecuts, but the ongoing shutdown has delayed the release of crucial economic reports, leaving officials with limited visibility on the state of the economy.

Crypto market participants are expecting the fed to cut rates, and Polymarket odds for a 25bps rate cut current stands at 96%. Meanwhile, the CME Group’s FedWatch Tool indicates a 98.9% chance that the U.S. would lower rates.

Although several top Fed officials, including Jerome Powell , Michele Bowman, and Christopher Waller, have signalled support for an additional interest rate cut during recent appearances, the release of additional economic data would offer the clarity needed to justify such a move and help the central bank assess whether inflation is easing fast enough to warrant further policy easing.

Progress around the CLARITY act

Once the shutdown ends, it could also fast-track progress around the CLARITY Act , a landmark crypto market structure bill that is expected to define clear regulatory boundaries between the SEC and the Commodity Futures Trading Commission.

Even though work on the legislation has continued in Congress despite the shutdown according to some lawmakers, its passage through the Senate and eventual signing into law could gain momentum once normal government operations resume

US could start funding strategic Bitcoin reserve

On Oct. 7, crypto-friendly US Senator Cynthia Lummis said the government could begin funding its Strategic Bitcoin Reserve at any time. Due to the shutdown, attention has largely shifted toward immediate fiscal priorities, leaving the reserve plan and related legislative work in the background.

When the shutdown ends, the initiative could be back in focus as part of broader efforts to advance the Bitcoin Act and establish the United States’ first national Bitcoin stockpile. As the world’s largest economy, if the U.S. starts holding Bitcoin in its reserves it is expected to further legitimize Bitcoin as a strategic asset which in turn could bolster market confidence and help crypto market recover.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Bitcoin News Update: Stability-Focused Crypto Pioneers Take On Unpredictable Industry Leaders

- Bitcoin's 2025 price forecasts predict $168,000 peaks amid technical/macroeconomic optimism, but correction risks persist if key support levels fail. - Solana (SOL) struggles with bearish technical patterns near $130, while Bitcoin Munari and Astra Bitcoin emerge as stability-focused alternatives via structured presales and gold/real-estate backing. - Regulatory developments like Binance's HNWI services and Nasdaq's ETF options expansion highlight crypto's institutional maturation, though legal challenge

Bitget-RWA2025/11/30 01:52
Bitcoin News Update: Stability-Focused Crypto Pioneers Take On Unpredictable Industry Leaders

Chainlink Faces $13.50 Showdown: Bulls Target Breakout While Bears Caution of Potential Drop

- Chainlink (LINK) tests $13.50 resistance as bulls anticipate a potential breakout after years of consolidation. - Analysts highlight $13.50-$16 as critical thresholds, with failure to hold above risking a drop to $11.80 support. - Mixed technical signals show $648M daily volume and $9.16B market cap, but indecisive closes challenge bullish momentum. - Market watchers debate December's potential breakout, emphasizing LINK's strategic role in DeFi infrastructure.

Bitget-RWA2025/11/30 01:52
Chainlink Faces $13.50 Showdown: Bulls Target Breakout While Bears Caution of Potential Drop

Bitcoin Updates: AI-Induced Systemic Turmoil Drives Move Toward Bitcoin and Gold, Kiyosaki Issues Caution

- Robert Kiyosaki warns of AI-driven global financial crisis, urging investors to prioritize Bitcoin , Ethereum , gold , and silver as inflation-resistant assets. - He attributes structural collapse to AI-driven job losses, remote work, and the unraveling yen carry trade, which destabilizes traditional investment strategies. - Kiyosaki forecasts Bitcoin at $250,000 by 2026, Ethereum as a smart contract alternative to gold, and silver surging to $200/ounce amid systemic risk. - Despite selling $2.25M in Bit

Bitget-RWA2025/11/30 01:52
Bitcoin Updates: AI-Induced Systemic Turmoil Drives Move Toward Bitcoin and Gold, Kiyosaki Issues Caution