It seems that the U.S. government shutdown has disproportionately impacted the digital asset market. Since the shutdown began on October 1, cryptocurrency markets have relied on a disparate set of indicators from the private sector to gauge momentum, according to a memo from QCP Capital on Wednesday.
Additionally, Bitcoin spot ETFs in the United States – which have been a cornerstone for investor flows into digital assets since their launch in January 2024 – have recently become a burden on the market, as investors withdrew more than $2 billion from them over six consecutive trading sessions.
Timothy Meiser, head of research at BRN Analytics, stated that this ongoing bleed reflects a state of hesitation among U.S. institutional investors, who prefer to protect their capital amid financing pressures and ongoing uncertainty in economic policies.
