BREAKING: U.S. GOVERNMENT SHUTDOWN IN 6 DAYS
Last time this happened, gold and silver hit new ATHs. Risk assets, however, can face extreme pressure. We’re entering a near data blackout, and traders need to be vigilant.
4 Real Threats:
1️⃣ Data Blackout – No CPI, no jobs reports. The Fed and risk models go blind. Volatility (VIX) reprices higher to reflect uncertainty.
2️⃣ Collateral Shock – Existing credit warnings + shutdown could trigger downgrades. Repo margins spike. Liquidity gets crushed.
3️⃣ Liquidity Freeze – RRP buffer is dry. No safety net. Dealers hoarding cash could freeze funding markets.
4️⃣ Recession Trigger – Each week of shutdown cuts ~0.2% of GDP. Enough to tip a stalling economy into a technical recession.
📉 Last major funding stress (March 2020) saw the SOFR–IORB spread blow out. Watch this spread closely — a widening gap signals private markets starving for cash while the Fed sits on liquidity.
Market Moves:
• $DUSK: 0.1564 (-18.24%)
• $ZKC: 0.1321 (+6.1%)
• $AUCTION: active setup
Bottom line: Markets are highly sensitive. Stay alert, position carefully, and don’t let fear override strategy.
#CryptoNews #TradingTales #Macro #volatility #Risk
