Bitcoin Drops Below $100K as U.S. Shutdown Ends and Treasury Yields Surge
Bitcoin Price Falls Sharply Below $100K as U.S. Government Shutdown Comes to an End The longest government shutdown in U.S. history has officially ended — yet Bitcoin and broader crypto markets...
Bitcoin Price Falls Sharply Below $100K as U.S. Government Shutdown Comes to an End
The longest government shutdown in U.S. history has officially ended — yet Bitcoin and broader crypto markets remain deep in the red. Just hours after lawmakers reached a short-term deal to reopen the government, Bitcoin dropped to $98,962.06, falling below the major psychological level of $100,000. The decline has raised concerns among investors and highlighted renewed macroeconomic pressures.
The shutdown had severely disrupted the U.S. economy, delaying pay for more than 800,000 federal workers and jeopardizing essential services. Historically, markets tend to respond positively when shutdowns conclude. However, this time, Bitcoin failed to follow the typical recovery pattern.
Some traders initially expected a “buy the rumor, sell the news” scenario — where asset prices rise ahead of good news and drop afterward. Instead, BTC moved lower almost immediately after the deal was finalized, signaling deeper structural factors at play.
Why Bitcoin Is Falling Despite the Shutdown Ending
The end of the shutdown appears to have shifted investor attention back to broader macroeconomic headwinds, weighing heavily on risk assets such as Bitcoin.
One major factor is the rapid rise in U.S. Treasury yields, which reduce the appeal of higher-risk markets.
The 10-year Treasury yield surged 29 basis points, reaching 4.106%, offering investors safer returns and attracting capital away from crypto and equities.
Meanwhile, the U.S. dollar continued weakening, but this did little to support crypto markets amid the risk-off environment.
The shutdown’s resolution also triggered a broad stock market decline, led by a sharp drop in the tech sector.
- The Nasdaq fell 5%,
- The S&P 500 dropped 6%,
- And the Dow Jones slipped 40%.
These declines mirrored Bitcoin’s downward trend, reinforcing the narrative that macroeconomic forces — not shutdown-related uncertainty — are currently driving market sentiment.
