Crypto Market Update: Ether Nears $4K as Shutdown Fears Weigh on Bitcoin & Altcoins
Cryptocurrencies took a hit today as rising U.S. government shutdown risks and cautious signals from the Federal Reserve triggered a broad market pullback.
Market Moves:
- Ether (ETH) led the decline, dropping over 3% to $4,037, nearing the $4,000 level for the first time since early August.
- Bitcoin (BTC) slipped below $112,000, while XRP, Solana (SOL), and Dogecoin (DOGE) fell between 2–3%. SOL approached the key $200 support level.
- The CoinDesk 20 Index fell 2%, reflecting the overall market pressure.
Macro Drivers:
- U.S. Government Shutdown Risk: Prediction markets now price a 77% chance of a shutdown by year-end and a 63% chance by October 1. The White House has asked federal agencies to prepare for potential furloughs if Congress fails to pass a funding bill.
- Federal Reserve Signals: San Francisco Fed President Mary Daly signaled support for further rate cuts but emphasized a data-dependent approach, keeping markets cautious ahead of Friday’s PCE inflation data.
What Traders Are Watching:
- Ether and Bitcoin near-term support levels (~$4,000 for ETH, ~$111k for BTC).
- U.S. government funding developments and potential shutdown headlines.
- Upcoming Fed policy updates and inflation data, which could influence liquidity and market sentiment heading into Q4.
The market reaction highlights how macroeconomic risks and Fed uncertainty continue to impact crypto. Traders are closely monitoring developments as liquidity, leverage, and macro signals interplay to shape near-term price action.
