Cryptocurrencies Dip Ahead Of Expected US Government Shutdown Impact

Cryptocurrency markets, including Bitcoin and Ethereum, experienced declines mirroring stock futures as investors reacted to the looming U.S. government shutdown, which threatens federal employee layoffs. Bitcoin fluctuated near $112,000 to $115,000, with trading volumes and open interest decreasing, while Ethereum hovered around the $4,000 support level. Despite short-term volatility, analyst Michaël van de Poppe emphasized the $112,000 level as strong support for Bitcoin, predicting an upward trend to resume soon. Altcoins such as Dogecoin and Cardano lagged behind Bitcoin's performance, contributing to modest overall losses in the crypto market, though September is still expected to close positively. Stock futures also declined amid the shutdown concerns, despite the Dow Jones setting a new closing record earlier in the day. Additionally, regulatory discussions between the SEC and CFTC are ongoing to align approaches, while Coinbase addresses banking concerns around stablecoin rewards, reflecting broader market and regulatory uncertainties.