If Republicans and Democrats cannot agree to the budget, the US federal government will be closed late at night.
BTC falls under the south shadow of the US government
US Republicans and Democrats locked up the corner in the country’s fiscal direction on Tuesday. The stock market has declined, with Bitcoin falling below $114K after a brief rally after Monday’s weekend.
Republicans are now in a majority in both Congresses, but even after passing a temporary funding bill in the House, Republicans failed to approve the bill in the Senate, falling short with 60 votes. Democrats also proposed their own laws, calling for an extension of the health insurance tax credit and a reversal of the Medicaid cuts implemented by the Trump administration at the beginning of the year. The Democratic bill was also not passed by the Senate.
And now, both sides are blaming each other for their deadlock. If resolved by midnight, it would lead to the 15th government shutdown since 1980. Another closure could leave millions of federal workers unpaid and many government programs and services affected. The final closure lasted 35 days in Donald Trump’s first term in 2018, seeing a loss of economic activity of $3 billion. Given such harsh results, it’s not surprising that both Bitcoin and stocks were bearish on Tuesday.
“Senate Democrats have binary options,” said US Senate Majority Leader John Toon on Tuesday afternoon. “They can vote for a clean, ongoing resolution to keep the government open so that they either went 13 times when Biden took office or shut down the government.”
Market Metric Overview
According to CoinmarketCap, Bitcoin was $113,922.15 at the time of writing, a mere 0.13% decline from yesterday, but an increase of 1.83% from last week. Cryptocurrency has hovered between $112,740.56 and $114,836.62 over the last 24 hours.
(BTC Price/Trade View)
Daily trading volume fell slightly at $57.86 billion, with market capitalization barely changing, soaking between 0.29% and $2.26 trillion in line with price action. Bitcoin’s advantage rose 0.51% over 24 hours, up 59.14%.
(BTC dominance/trade view)
Total open interest on Bitcoin futures fell 3.19% to $802.5 billion a day, according to Coinglas data. Bitcoin liquidation reached $47.65 million in 24 hours, of which $29.43 million was in shorts. The long liquidation constituted the remaining $18.22 million.
