With the U.S. government shutdown entering its 34th day (the longest U.S. government shutdown to date), Bitcoin and Ethereum prices have continued to drop. The political stalemate has scared off investors, as the risk-averse mood gripped the markets and accelerated the crypto price drops.
Bitcoin and Ethereum Prices Keep Dropping
According to the data provided by TradingView, BTC price has declined 5.6% in the last 24 hours to approximately $100,547 at the time of writing. This represents its lowest price in four months.
Ethereum dropped more than 7%, sliding below $3,340, a level that erased its year-to-date gains. Both assets have now lost nearly a fifth of their value in just one week.
Senator Bill Hagerty criticized Senate Democrats for voting down efforts to reopen the government for the 14th time. He accused them of “choosing politics over paychecks.”
Hagerty further said over 1.4 million federal employees are now missing their second paycheck as the government shutdown lingers. Earlier, White House economic advisor Kevin Hassett predicted that the shutdown would end soon. But that outlook has clearly failed to materialize as political divisions deepen.
Transportation Secretary Duffy also warned that air traffic controllers could soon force airspace closures due to unpaid staff. He added that “mass chaos” may occur if the shutdown continues for another week.
Government Shutdown Could Exceed 42 Days
According to Kalshi traders, there is now a 59% possibility that the shutdown will extend beyond 42 days. The continuing standoff creates anxieties of further economic disturbance, which includes late payments and frozen data releases.
The crisis comes as institutional and corporate holders of Bitcoin adjust their portfolios. Paris-based Sequans Communications revealed that it sold 970 BTC, trimming its holdings from 3,234 to 2,264 BTC, valued at $232 million.
Sequans Cuts Bitcoin Holdings as Schiff Renews Criticism
Based on an official statement, the IoT semiconductor firm said the move was part of a “strategic asset reallocation.” It would strengthen its balance sheet and pay down $94.5 million in debt.
Despite the sale, CEO Georges Karam said Sequans’ “deep conviction in Bitcoin remains unchanged.” He described the transaction as tactical amid current market conditions.
Meanwhile, gold advocate Peter Schiff reignited his criticism of Bitcoin. He noted that the asset “has now lost one third of its value priced in gold since its peak last month.” Schiff added, “Just two thirds left to go,” mocking Bitcoin’s weakness relative to traditional safe-haven assets.
Source: https://coingape.com/bitcoin-ethereum-slide-more-as-government-shutdown-continues/
