With funding set to run out by September’s end, the White House readies for potential job cuts while traders brace for a government shutdown.
By Omkar Godbole | About 7 hours ago
Key Points
Ether led the decline as shutdown odds surged, dipping over 3% and nearly testing $4,000.
Polymarket traders now assign a 77% chance of a U.S. shutdown before year-end.
The White House has instructed agencies to prepare staff reduction and furlough plans.
During Thursday’s Asian session, Ether (ETH) slipped more than 3%, approaching the $4,000 mark, while bitcoin (BTC) fell over 1% below $112,000. XRP, solana (SOL), and dogecoin (DOGE) also lost between 2.5% and 3%, with SOL nearing a break under $200. The CoinDesk 20 Index dropped 2% to 3,940.
Shutdown probabilities spiked on prediction markets: the Polymarket contract “U.S. government shutdown in 2025?” priced in at 77% odds, its highest since launch, while the chance of an Oct. 1 shutdown stood at 63%. Without a continuing resolution or bipartisan agreement on full-year funding, the government risks running out of money by the end of September.
Reports suggest the White House is preparing for mass job cuts and furloughs if Congress fails to act. Passing spending bills requires crossing the 60-vote threshold, meaning bipartisan support is critical.
Meanwhile, sentiment across risk assets remained cautious after Fed officials signaled patience on further rate cuts. San Francisco Fed President Mary Daly reiterated support for easing but avoided giving a timeline, while Chair Jerome Powell stressed data dependence.
Traders now await Friday’s PCE inflation release
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en as pivotal for gauging whether the Fed has room to add liquidity into Q4. According to QCP Capital, a benign inflation print could provide the spark for a long-awaited BTC breakout.#BinanceHODLerXPL #SECxCFTCCryptoCollab #BinanceHODLerMIRA #DogecoinETFProgress #PerpDEXRace $BTC $ETH $XRP