The coming days promise to be captivating<\/strong> for cryptocurrency investors. As Congress struggles to reach a budget agreement, a partial shutdown<\/strong> of the US government seems imminent. But what effects would such an event have on Bitcoin<\/a><\/strong> and other digital assets?<\/p>\n\n\n\n Overall, government shutdowns typically have only limited impact<\/strong> on financial markets. However, the current situation raises legitimate questions about Bitcoin’s resilience in the face of political uncertainty<\/strong>. Let’s take a closer look at what a shutdown could mean for the leading cryptocurrency.<\/p>\n\n\n\n During a government shutdown, the administration literally runs out of money<\/strong> to fulfill its functions. Only essential services such as aviation security, social security, and military operations continue. Hundreds of thousands of federal employees are temporarily put on unpaid leave<\/strong> or forced to work without pay.<\/p>\n\n\n\n Over the past fifty years, the government has shut down 21 times<\/strong>. The longest closure lasted 35 days, from December 2018 to January 2019, when Congress and President Trump failed to agree on funding for the Mexican border wall<\/strong>.<\/p>\n\n\n\n Generally, these shutdown periods last only a few days<\/strong> and their impact on the economy is negligible<\/strong>. However, if the closure persists, the damage can become more significant. According to the rule of thumb, GDP would decrease by approximately one-tenth<\/strong> of a percent per week.<\/p>\n\n\n\n Currently, uncertainty reigns supreme \u2013 something investors hardly appreciate. Yet, Bitcoin appears unfazed<\/strong> by this political instability so far. The price of the leading cryptocurrency even surged yesterday, exceeding the $112,000<\/strong> mark.<\/p>\n\n\n\nA Temporary Disruption?<\/h2>\n\n\n\n
Bitcoin, a Safe Haven?<\/h2>\n\n\n\n