If the U.S. government shuts down tomorrow, it means Congress failed to agree on a budget. Many government offices would close, and thousands of workers would be sent home. Some workers would still work without pay, such as the military and airport staff.
But what happens to the financial market? Gold, Silver, Bitcoin, BNB etc……
➠ 𝗛𝗼𝘄 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗠𝗮𝗿𝗸𝗲𝘁𝘀 𝗠𝗮𝘆 𝗥𝗲𝗮𝗰𝘁
The stock market usually does not like uncertainty. A shutdown can cause fear and confusion, especially at the start. Because of this, stocks may fall at first as investors worry about the economy slowing down. Banks, government contractors, and travel companies could be hit the hardest.
Over time, markets often calm down if investors believe the shutdown will be short. If it lasts longer, losses can grow.
➠ 𝗣𝗼𝘀𝘀𝗶𝗯𝗹𝗲 𝗣𝗼𝘀𝗶𝘁𝗶𝘃𝗲 𝗘𝗳𝗳𝗲𝗰𝘁𝘀
Some investors may move money into safe assets, like Gold or cash. Others may look for new places to park their money, including crypto. Markets sometimes bounce back after the first shock if no major damage happens.
➠ 𝗛𝗼𝘄 𝗖𝗿𝘆𝗽𝘁𝗼 𝗖𝗼𝘂𝗹𝗱 𝗕𝗲 𝗔𝗳𝗳𝗲𝗰𝘁𝗲𝗱
Crypto can react in mixed ways. On the positive side, some people may buy $BTC as a hedge against government problems. Crypto is not controlled by the government, so shutdown fears can increase interest.
On the negative side, crypto markets are risky. If fear spreads across all markets, people may sell crypto to get cash. Prices could drop quickly, especially in smaller coins.
☘︎ 𝗛𝗼𝘄 𝗯𝗮𝗱 𝗶𝘁 𝗴𝗲𝘁𝘀 𝗱𝗲𝗽𝗲𝗻𝗱𝘀 𝗼𝗻 𝗵𝗼𝘄 𝗹𝗼𝗻𝗴 𝘁𝗵𝗲 𝘀𝗵𝘂𝘁𝗱𝗼𝘄𝗻 𝗹𝗮𝘀𝘁𝘀, 𝗪𝗵𝗮𝘁 𝗱𝗼 𝘆𝗼𝘂 𝘁𝗵𝗶𝗻𝗸?