Bitcoin Drops After U.S. Shutdown Ends — History Repeats Itself
Bitcoin has been taking a common route. It plummeted only weeks following the end of the U.S government shutdown on November 13, 2025. The same was witnessed in January 2019 when the Bitcoin plunged following the end of the shutdown. The recent drop is in the midst of a solid bull market and that is what makes the reaction even more dramatic.
Timeline and Market Impact of Shutdowns
The closure started on October 1, and it took 43 days. It was the longest in the history of the United States. By the time it was over investors scrurried to reprice risk. That change initiated a crypto market selling spurt. The change of sentiment was very abrupt and not expected by many traders.
Cryptocurrency analyst @cryptorover posted a graph of price movement of the two shutdowns. In 2019, Bitcoin fell almost 25 percent within seven days. The same is indicated in the 2025 chart. Bitcoin fell down to about 117,000 and may now check at 100,000-90,000. Such movement shows that the effect of macro events on the crypto market remains.
Massive Losses
Forced liquidations were the cause of most of the damage. In the bullish positions, traders were highly leveraged. After the market dropped those positions unravelled quickly. Bitcoin bottomed at an approximate of $3,200 in 2019. Traders are currently worried that there is further correction to be made in the event of an increase in the macro pressure.
Investor Waryness and Prognosis
Others feel that this correction gives a buying opportunity. Other people caution that the crash might be worsened by the uncertainty of the rest of the economy. Bitcoin may recover provided that the Federal Reserve reduces rates in the near future. Otherwise, this price may be lowered further. It is very important that this weekend puts the market direction.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bitcoin News Update: Major Crypto Money Laundering Case Highlights Worldwide Battle Against Digital Financial Crimes
- Qian Zhimin, 47, was sentenced to 11 years for orchestrating a $5.6B crypto Ponzi scheme affecting 128,000 Chinese victims. - UK authorities seized 61,000 BTC ($6B) during the case, the largest cryptocurrency seizure in UK history. - Qian fled China in 2017, lived lavishly in the UK for seven years using forged documents before her 2021 arrest. - The case highlights cross-border crypto crime challenges, with global authorities recovering assets linked to Chinese cyberattacks. - Prosecutors face hurdles i
Shutdown-Related Data Shortfalls Lead Fed to Delay Reducing Rates
- U.S. government shutdown ended Nov 12, 2025, but left critical economic data gaps for Fed's December rate decision. - 1.4 million furloughed workers and $11B lost output highlight shutdown's severe economic impact despite mixed private-sector data. - Fed faces delayed/missing jobs reports and CPI data, increasing likelihood of rate cut pause as policymakers emphasize data caution. - Market expectations shifted from 95.5% to 53.6% chance of December cut, reflecting demand for evidence-based monetary polic
AAVE experiences a 14.6% decline over 7 days as large investors make moves and short positions are rebalanced
- AAVE fell 14.6% in 7 days amid whale activity, including a $561M ETH withdrawal from Aave to Binance. - BitMEX co-founder Arthur Hayes sold $4.96M in crypto assets, including 1,630 AAVE tokens, reflecting broader portfolio adjustments. - Whale short positions and leveraged trades highlight risks in DeFi markets, with $125M paper losses and $7M floating profits exposing high-stakes strategies.
Bitcoin News Today: Chinese Pensioners Defrauded in £4.6 Billion Cryptocurrency Pyramid Scheme, Mastermind Receives 11-Year Sentence in Historic UK Trial
- UK sentences Qian Zhimin to 11 years for £4.6B crypto Ponzi scheme defrauding 128,000 investors. - Case marks largest UK crypto seizure (61,000 BTC, $5-6B) in history, involving global cross-border investigation. - Victims, mostly Chinese retirees, lost life savings via patriotic-themed scams exploiting false political endorsements. - Sentencing highlights cross-border crypto crime challenges despite international cooperation between UK and Chinese authorities.
Trending news
MoreCrypto prices
More
