Another Government Shutdown Averted
The U.S. government has narrowly avoided another shutdown, as a deal was reached to keep it open for business for another 45 days. This is not the first time such a situation has occurred, as a similar agreement was made in June to avoid a shutdown over the U.S. debt ceiling. However, this extension is only a temporary solution, as there are still disagreements over funding levels, borders, and the Ukraine/Russia war that need to be resolved.
This ongoing cycle of debt and political turmoil puts the burden on U.S. citizens who ultimately pay the price for these scenarios.
Bitcoin Makes Gains
Following the news of the temporary agreement, Bitcoin experienced a significant surge of over 3%, reaching $28,000. It also surpassed its 200-week moving average, which is considered a critical resistance level. Bitcoin has managed to maintain its position above this moving average and currently sits at $28,360. If it continues to consolidate above this level, it may test its previous local high of nearly $32,000.
Bitcoin Dominance Increases
While the overall crypto market saw gains against the dollar, Bitcoin led the way by outperforming most other cryptocurrencies. As a result, Bitcoin dominance spiked above 50% once again. Bitcoin has been following an upward trendline since January and has encountered strong resistance. The question remains whether it will break through and lead the crypto bull market or if altcoins will catch up.
However, progress for crypto may be slow due to limited liquidity across all markets unless a major event forces the U.S. government to increase printing.
Hot Take: Bitcoin Rises as Government Shutdown Averted
The U.S. government’s last-minute agreement to avoid a shutdown has caused Bitcoin to rally, reaching $28,000 and surpassing its 200-week moving average. While this temporary solution prevents an immediate disruption, the underlying issues surrounding funding levels and geopolitical conflicts remain unresolved. Bitcoin’s dominance in the crypto market has increased, but it faces resistance that could determine its role in leading the bull market. Overall, progress for cryptocurrencies may be hindered by limited liquidity unless significant events prompt government actions.
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