Cryptocurrency Market Darkens as US Federal Government Shutdown Risk Looms

fferences in stance between President-elect Donald Trump and Congress regarding the budget and debt ceiling, the federal government is facing a shutdown risk, darkening the investment sentiment in the securities and cryptocurrency markets.

The federal government is facing a shutdown risk as President-elect Donald Trump and Congress clash over the budget and debt ceiling.

On Wednesday, the House of Representatives voted down a new Republican budget that included a three-month continuing resolution (CR), a two-year suspension of the debt ceiling, and $100 billion in disaster aid.

The CR would have provided short-term funding for the federal government to continue operating while lawmakers negotiated a longer-term spending bill. However, some Democrats and Republicans opposed the debt ceiling-related provisions included in the CR, increasing the risk of a government shutdown.

President-elect Trump has also expressed a strong stance on the matter. According to Walter Bloomberg, Trump stated, "If we're going to have a federal government shutdown, let's do it now," indicating his unwillingness to compromise.

The vote on the CR, which is seen as a last-minute effort to avert a government shutdown, is scheduled to take place at 10 AM (local time).

Meanwhile, the cryptocurrency market, including Bitcoin (BTC), continues to face pressure from both the hawkish remarks on monetary policy by Federal Reserve Chairman Jerome Powell last Thursday and the shutdown risk caused by the budget rejection.

At the time of writing, Bitcoin is trading at $94,170 with a 7.86% loss over the past 24 hours on the Binance Tether (USDT) market.