White House economic advisor Kevin Hassett said on Monday that the U.S. government shutdown could finally end “sometime this week,” suggesting that negotiations between the Trump administration and Congressional Democrats may be gaining momentum.

Speaking on CNBC’s Squawk Box, Hassett cautioned that if progress stalls, the administration might introduce “stronger measures” to pressure lawmakers into cooperation. The standoff – now stretching into its third week – has disrupted several key government functions, including the release of critical economic data that markets rely on to gauge the health of the U.S. economy.

With the Labor Department’s jobs report, consumer price index (CPI) update, and the Federal Reserve’s next rate decision all scheduled within the next 10 days, traders are growing anxious over the data blackout. Economists warn that extended gaps in reporting make it difficult to assess inflation trends or job growth accurately, adding uncertainty to an already fragile market environment.

The shutdown’s ripple effects have also spilled into the crypto sector, where investor confidence has waned amid reduced liquidity and slowing institutional inflows. Bitcoin and major altcoins have fallen sharply since the start of October, with total market capitalization briefly plunging below $3.6 trillion following record liquidations earlier this month. Analysts say traders are waiting for signs of political and monetary stability before re-entering risk assets.

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However, sentiment is shifting quickly as Washington reopening draws near. Bitcoin managed to reclaim the $110,000 level after briefly dipping to $101,000 on some exchanges. Market strategists believe a resolution would restore momentum to equities and crypto alike, especially with President Donald Trump expected to meet China’s President Xi Jinping at the APEC summit on October 31. The long-anticipated meeting is viewed as a possible turning point in the trade dispute that has weighed on global growth and investor sentiment throughout the year.

If both sides signal progress on tariffs and trade cooperation, analysts say it could spark a relief rally across multiple markets – particularly in assets sensitive to global liquidity such as Bitcoin and tech stocks.

For now, investors are watching two fronts: Washington’s progress in ending the shutdown, and the Federal Reserve’s upcoming policy meeting, where officials must balance easing inflation against new economic headwinds. A shutdown resolution followed by a dovish Fed tone could inject fresh optimism into both traditional and digital markets – just as political and trade tensions begin to ease.

Source: CNBC

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