Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Bitcoin News Update: U.S. Government Shutdown Wipes Out $700 Billion from Markets, Forcing Bitcoin Under $100K Amid Tightening Liquidity

Bitcoin News Update: U.S. Government Shutdown Wipes Out $700 Billion from Markets, Forcing Bitcoin Under $100K Amid Tightening Liquidity

Bitget-RWA2025/11/05 09:30
By:Bitget-RWA

- U.S. government shutdown drains $700B from markets via TGA, pushing Bitcoin below $100K amid liquidity contraction. - Corporate reports show mixed liquidity strains: 3D Systems reports $75.8M cash decline, Chord Energy spends $336M on Q3 capex. - Analysts cite "perfect storm" of macroeconomic crisis and exhausted crypto bull cycle, with 1M+ Bitcoin sold by long-term holders since June. - Markets face fragile balance: oversold conditions and seasonal Bitcoin strength contrast with political gridlock and m

Liquidity is tightening in both conventional and digital asset markets, with experts cautioning that a meaningful rebound will likely require a consolidation phase as economic and political challenges persist. BitMEX analysts report that the ongoing U.S. government shutdown, now lasting 36 days, has intensified the liquidity shortage by removing $700 billion from the financial system via the Treasury General Account (TGA). As a result, the TGA has surged to an unprecedented $1 trillion, depriving risk assets—including cryptocurrencies—of capital and sending

below $100,000 for the first time since June, according to a .

Recent corporate earnings further highlight the liquidity squeeze. 3D Systems (NYSE: 3DS) saw its cash and cash equivalents drop by $75.8 million in Q3 2025, mainly due to operational and financing cash outflows, as detailed in its

. Jackson Financial Inc. (JXN) reported $216 million in free cash flow at the holding company level, but indicated that liquidity reserves remain above their target in . Chord Energy (CHRD) reported $336.3 million in capital expenditures for the third quarter, with liquidity standing at $2.1 billion as of September 30, according to the . These varied results point to industry-specific pressures but are consistent with overall market vulnerability.

Bitcoin News Update: U.S. Government Shutdown Wipes Out $700 Billion from Markets, Forcing Bitcoin Under $100K Amid Tightening Liquidity image 0

BitMEX attributes Bitcoin's 19% slide from its October high to a combination of its four-year bull run losing momentum and the broader liquidity crisis. The extended government shutdown has halted Treasury outflows, postponing the cash infusions that typically bolster risk assets at year-end. Historically, after reaching a record high following ETF approval in 2024, Bitcoin has tended to fall 70-80% in the subsequent year, as noted in a

.

The Federal Reserve’s reluctance to cut rates, coupled with eight straight months of manufacturing decline, has added to investor unease. Ed Engel of Compass Point observed that since June, long-term holders have sold over 1 million Bitcoin, while retail demand remains weaker than in previous cycles. “We see support above $95k but don’t expect immediate catalysts,” he commented in a

.

Still, some analysts are cautiously hopeful. Axel from BlockBeats pointed out that markets appear oversold and could recover as short positions are covered, though a period of stabilization is likely before any sustained uptrend, according to a

. BitMEX anticipates a sharp rebound in liquidity once the shutdown concludes, with large sums expected to flow back into markets and potentially coincide with Bitcoin’s seasonal rally.

At present, investors must navigate a precarious environment. While company cash flows and crypto fundamentals show some strength, the combination of political stalemates, economic softness, and institutional selling continues to expose markets to heightened volatility.

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 Today: Bitcoin ETFs See $8B Outflows While Solana ETFs Draw $70M Over Five Consecutive Days

- U.S. Bitcoin ETFs faced $8.02B outflows over six days, with BlackRock's BIT losing $375.5M amid Bitcoin's $109k-to-$101k volatility. - Solana ETFs gained $70M in five days, including Bitwise BSOL's $195M inflow, as investors shift capital amid crypto market weakness. - Macroeconomic pressures and Fed hawkishness drove redemptions, but Matador locked $100M in Bitcoin for long-term accumulation. - Bitwise predicts $125k-$150k Bitcoin by year-end, though prices risk falling below $100k or $93k if support br

Bitget-RWA2025/11/06 05:34
Bitcoin News Today: Bitcoin ETFs See $8B Outflows While Solana ETFs Draw $70M Over Five Consecutive Days

Cardano News Today: Cardano’s DeFi Challenges: Lack of User Engagement and Issues in Governance

- Cardano founder Charles Hoskinson blames user apathy for DeFi stagnation, citing low TVL ($262M) compared to Solana ($11.17B) and Ethereum ($84.22B). - He emphasizes governance/coordination gaps over technical flaws, noting 1. 3M stakers hold $15B but lack liquidity participation despite stablecoin availability. - Cardano's roadmap prioritizes Bitcoin interoperability and real-world finance via projects like Midnight and RealFi to unlock ADA/BTC liquidity. - Market skepticism persists as ADA drops 6.2% a

Bitget-RWA2025/11/06 04:58
Cardano News Today: Cardano’s DeFi Challenges: Lack of User Engagement and Issues in Governance

Bitcoin News Update: Robinhood Investors Profit While Crypto Community Seeks Unity

- Robinhood's VP Shiv Verma stated the firm is cautiously evaluating crypto treasury adoption, prioritizing shareholder value over community alignment. - Q3 2025 crypto revenue surged 339% to $268M, driven by $80B trading volume and new token listings like SEI. - While 200+ firms hold $121B in crypto treasuries, Robinhood focuses on product innovation and international expansion instead. - The company's 26.8M funded accounts highlight its appeal to growth-oriented investors amid industry divergence in cryp

Bitget-RWA2025/11/06 04:44
Bitcoin News Update: Robinhood Investors Profit While Crypto Community Seeks Unity

How to Participate in Circle's Native Chain Arc Testnet Interaction?

The tutorial covers topics such as Testnet Coins, NFT Minting with Domain, Contract Deployment, and more, making it easy to understand and follow.

BlockBeats2025/11/06 04:34
How to Participate in Circle's Native Chain Arc Testnet Interaction?