The U.S. government shutdown has entered its 10th day under Donald Trump’s second term, freezing much of Washington and rattling the crypto market. With Congress gridlocked over border security and spending bills, investors are bracing for continued volatility.
While traditional markets reel, the crypto price of key assets like Bitcoin, Ethereum, and Litecoin has dipped amid uncertainty, though analysts believe the sell-off is temporary.
The real question traders are asking now: once Washington reopens and ETF approvals resume, will crypto go back up again?
The October 2025 partial government shutdown has halted primary federal functions, with over 800,000 federal workers furloughed and agencies like the SEC, IRS, and CFTC either fully closed or operating with skeleton staff.
This has paused all pending crypto ETF reviews, leaving more than 90 filings in limbo, from DOGE and XRP to LTC and HBAR. The SEC’s “emergency-only” policy means that even near-finalised ETFs, such as Canary Capital’s Litecoin (LTCC) and HBAR (HBR) funds, cannot move forward until funding resumes. The result?
Investors’ FUD has triggered outflows across altcoins, pushing down and slipping down. At the same time, Bitcoin briefly tested $120K before stabilizing.
Historically, government shutdowns cause short-term volatility but limited long-term harm. However, in the US crypto space, where regulation and ETF approvals drive sentiment, the timing couldn’t be worse.
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Despite near-term issues, most analysts see this correction as temporary turbulence rather than the end of the crypto season.
Bitcoin and Hold have both behaved like “safe havens”, with gold hitting new highs and Bitcoin reclaiming $120 post-dip.
The FIT21 crypto framework and pending ETF approvals are now widely expected to resume swiftly after the shutdown, potentially sparking the next leg up in Q4.
Bloomberg’s Eric Balchunas and James Seyffart confirmed that both LTC and HBAR ETFs are “at the goal line” with only final disclosures pending, the last step before official listing.
Once approved, ETFs could open billions in inflows, strengthening access for traditional investors. That’s why some traders view the shutdown as a pause before liftoff.
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Yes – and there’s growing data to support it. Litcoin (LTC) is already making its move, pushing more than 10% to over $130 mar,k and Hedera (HBAR) is positioning to be next.
