Bitcoin edges lower as U.S. enters partial government shutdown
Bitcoin slipped toward $83,000 on Friday as the U.S. government entered a partial shutdown, prompting traders to adopt a cautious stance ahead of a House vote expected Monday.
The broader crypto market felt the pressure as lawmakers missed a midnight funding deadline, adding uncertainty to an already fragile market. Bitcoin traded around $83,559, up about 1% for the day but down roughly 6.8% over the past week. Ether hovered near $2,686, down 1.9% in 24 hours and 9% on the week, while XRP traded near $1.72, off 1.6% for the day and close to 10% lower over seven days.
The shutdown is likely to be short-lived. While the Senate approved a funding package, the House is out until Monday, creating a brief technical lapse over the weekend. The U.S. Securities and Exchange Commission also said it would operate with “very limited staff” starting Jan. 31.
For risk assets, the timing is notable. The shutdown coincides with thin weekend liquidity and a heavy news cycle, potentially weighing on crypto prices.
Prediction markets highlight the complexity of the shutdown. On platforms like Polymarket and Kalshi, traders are forced to navigate the difference between a government that is technically closed and one that remains operational in practice—a nuance that can affect contract settlements.
In crypto, the shutdown acts more as a sentiment stress test than a direct economic shock. It encourages cautious trading, smaller positions, and amplifies price dips as buyers hold back ahead of a potentially volatile weekend.

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