๐จ $100B Exits Crypto on U.S. Shutdown Rumors Hereโs the Truth
Rumors are flying that the U.S. government is about to shut down and the crypto market may dump massively. Letโs break down whatโs actually happening ๐
๐น Why is shutdown risk even a topic?
The U.S. government must pass funding by Jan 31.
If politicians donโt agree in time โ partial shutdown.
๐น Why does this affect crypto?
Crypto reacts to liquidity, not just fear.
Key concept: TGA (Treasury General Account)
โ Think of it as the governmentโs bank account.
When TGA needs to go up, money is pulled out of the system.
Less liquidity = risk assets dump.
Crypto = risk asset โ vulnerable to liquidity drains.
๐น Possible outcomes:
1๏ธโฃ Deal + No Shutdown โ possible relief pump
2๏ธโฃ No Deal + Shutdown โ liquidity shock โ potential dump
3๏ธโฃ Deal but Tight Liquidity โ slow choppy market (lowest probability)
๐น Historical reference
Last shutdown = $BTC & $ETH dropped significantly.
๐น How to position
For traders:
โ Futures:
Avoid high leverage
Avoid tight stop-losses (shutdown headlines create wicks)
๐ Spot:
Shutdown dips can be buying opportunities
๐น Coins to watch
๐ Solana (SOL)
๐ Ethereum (ETH)
๐ $XRP
๐ Dip Targets If Shutdown Hits
$SOL โ limit below $120
$ETH โ below $2,000
$XRP โ below $1.2
Macro matters. Liquidity matters even more. Stay informed, not scared. ๐ง
