Government Shutdown Pushes Back ETF Approvals, Sending HBAR Down 5%

HBAR Drops 5% as Institutional Caution Grows Amid Regulatory Delays

Hedera Hashgraph’s HBAR token fell nearly 5%, from $0.22 to $0.21, between October 8 and 9 as institutional investors stepped back amid ongoing regulatory uncertainty. Trading volumes surged above 100 million units per hour, with volatility hitting 5.4%, signaling heightened market caution.

Heavy selling occurred between 01:00 and 08:00 on October 9, with technical resistance at $0.22 and institutional support around $0.21. In the final hour, HBAR slid an additional 0.85% to $0.212, and a brief recovery to $0.215 quickly failed. Volumes dropped to near zero in the last minutes, suggesting either technical issues or a coordinated institutional retreat.

The broader selloff reflects concern over the U.S. government shutdown, which has halted SEC operations and delayed key ETF approvals. Pending filings include Canary Capital’s HBAR and Litecoin ETFs, while Bitwise has reduced Solana ETF fees and added staking options to stay competitive. Analysts expect corporate treasuries to remain cautious until regulatory clarity returns.

Key Observations:

HBAR declined 4.13% during Oct. 8–9, reflecting institutional risk management
Peak intraday volatility of 5.4% exceeded normal corporate thresholds
Coordinated selling confirmed institutional participation, with support at $0.21 and resistance at $0.22
Final hour losses extended by 0.85%, recovery to $0.215 unsuccessful
Market liquidity dried up in the last minutes, indicating a likely institutional exit