U.S. government shutdown has now stretched into its 11th day under Donald Trump’s second term — freezing federal operations, delaying ETF approvals, and sending shockwaves through the crypto market.
With Congress locked in a political standoff over border security and spending, the market is holding its breath. Bitcoin, Ethereum, and other top assets have dipped — but analysts say this is likely a pause, not a collapse.
🏛️ How the Shutdown Is Shaking the Crypto Market.
The October 2025 partial shutdown has furloughed over 800,000 workers and stalled key regulatory agencies like the U.S. Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and IRS.
This means:
➡️ All pending crypto ETF reviews are frozen.
➡️ More than 90 filings — including DOGE, XRP, LTC, and HBAR — are stuck in limbo.
➡️ Even near-finalized ETFs like Canary Capital’s Litecoin (LTC) and HBAR funds can’t move forward.
Market impact has been brutal:
➡️ Hedera (HBAR): -20.48% 📉
➡️ Litecoin (LTC): -23.37% 📉
Bitcoin briefly tested $120,000 before stabilizing.
This sharp drop stems less from fundamentals and more from investor uncertainty. When regulatory engines stop, momentum stalls.
📊 Why Analysts Expect a Strong Rebound.
Despite the turbulence, most analysts see this pullback as temporary — not terminal.
Here’s why:
🟢 Bitcoin and gold are holding firm, signaling a classic “flight to quality.”
🔴 ETF reviews are expected to resume immediately after the shutdown ends.
🔵 The U.S. Congress typically resolves shutdowns with fast-track processing for pending approvals.
🟡 Analysts like Eric Balchunas and James Seyffart confirm that LTC and HBAR ETFs are “At the goal line” — with only final disclosures pending.
When these ETFs are approved, billions in institutional capital could flow in — setting the stage for a Q4 crypto rally.
🚀 Could LTC and HBAR Lead the Next Rally?
Many traders believe so.
• LTC has already rebounded more than 10%, crossing $130 again.
• HBAR appears to be next in line — with price targets pointing toward the $0.236 level if momentum builds.
• Technical indicators like RSI suggest that selling pressure may have bottomed out.
This kind of pre-move often signals smart money positioning ahead of major catalysts.
🕒 When Will Crypto Go Back Up?
Shutdowns historically create short-term volatility, not long-term damage. Once Washington turns the lights back on, ETF approvals are likely to restart quickly — bringing clarity, liquidity, and renewed optimism.
If this plays out, LTC, HBAR, and other key assets could lead the next leg up, turning today’s fear into tomorrow’s rally.
✨ Key Takeaways:-
➡️ U.S. shutdown halts ETF approvals, freezing more than 90 crypto filings.
➡️ HBAR and LTC saw heavy losses but are positioned near ETF launch points.
➡️Analysts expect a strong rebound once Washington reopens.
➡️ LTC is already recovering, signaling early accumulation.
➡️ ETF approvals could unlock massive institutional inflows into crypto.
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$LTC $HBAR $XLM