Crypto Users Ponder if Ongoing Govt. Shutdown Will Prolong the Current Bitcoin Bear Market?

The US government shutdown has been going for about a month now. The shutdown that started on December 22, according to Bloomberg estimates could result in overall federal contractors losing as much as $200 million a day in delayed revenue or just lost. Delta Airlines shares that it has already lost $25 million in revenue due to lost govt. flights.

This shutdown reduces the quarterly economic growth by 0.13 percentage every week that it lasts, calculated by Kevin Hassett, the chairman of the Council of Economic Advisers. And if it persists once more week, Standard and Poor’s estimates it would cost the US economy $7.1 billion in lost value. This money that is being lost all over the country is more than the $5.6 billion US President Donald Trump was seeking for the wall on the Mexican border.

The situation seems to slowly get worse with each passing day. So what does it actually means for Bitcoin and the crypto sector? Trace Mayer, an entrepreneur, investor, and journalist took to Twitter to question the effect this shutdown has on Bitcoin.

He further stated that this is encouraging the “Hodl” ers as the shutdown has stopped the flow of cash in the economy,

The crypto market is already going through winter. From the highs of December 2017 when bitcoin hit its all-time high at about $20,000, the leading cryptocurrency has lost over 80 percent of its value and many cryptocurrencies are down more than 90 percent that has resulted in the loss of about $700 billion from the market.

On 16th January, SEC issued an order stating that all pending administrative proceedings have been put on hold. This gave rise to the speculation that the crypto futures application by Bakkt will get postponed as well. Some even went as far as suggesting that the long-awaited BItcoin ETF by VanEck could get greenlighted just by default. However, lawyer Jake Chervinsky, put an end to this as he stated,

“The VanEck/SolidX bitcoin ETF won't be automatically approved just because the US government is shut down.”

The effect of the shutdown on the price is not yet known however, it surely has other effects as Kristin Smith, director of external affairs for the Blockchain Association recently told,

“We’ve been making real progress engaging with lawmakers and regulators on the merits of the token economy in the last several months, but the shutdown puts the handbrake on some of those conversations.”

She further added that the pressing concerns have been on taxes, SEC guidance, and Treasury guidance fronts that have been pushed to

“the back burner for the foreseeable future.”

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