Bitcoin News Today: As Shutdown Drags On, Bitcoin's Uninterrupted Network Contrasts with Federal Chaos

Bitcoin fell toward its lowest level since June 2025 as the U.S. government shutdown entered its 35th day, tying the record set during the 2018-2019 standoff. The cryptocurrency traded near $103,000, about 20% below its October peak of $126,500, while the U.S. Dollar Index (DXY) climbed above 100 for the first time since August, intensifying pressure on risk assets. Analysts linked the selloff to the prolonged political deadlock, which has furloughed federal workers and disrupted critical services, including air traffic control and small business loan approvals, according to a CoinDesk report.

The shutdown, now the joint-longest in U.S. history, has become a focal point for both political and market observers. Treasury Secretary Scott Bessent highlighted Bitcoin's resilience in contrast to the federal dysfunction, tweeting on October 31 that the cryptocurrency's "uninterrupted network" since 2009 offered a lesson for Congress, according to a Coinotag article. His remarks drew mixed reactions: ETF analyst Nate Geraci called the endorsement "wild," while developers like Luke Dashjr argued Bitcoin faces internal challenges despite its operational uptime. Bessent also reiterated support for a Strategic Bitcoin Reserve and stablecoin adoption, signaling broader policy interest in digital assets.

Market projections suggest a potential rebound in November, with Bitfinex analysts estimating $10 billion to $15 billion in ETF inflows. However, the dollar's strength complicates optimism. The DXY's surge above 100, driven by Federal Reserve caution and the Bank of Japan's dovish stance, has historically acted as a headwind for Bitcoin. Analysts noted an inverse correlation between the two assets in a BeInCrypto analysis, with a stronger dollar often leading to risk-off sentiment. Meanwhile, the shutdown has delayed XRP ETF approvals, with Canary Funds adjusting its filing strategy, per a Bitcoinist timeline, to bypass SEC delays amid the administrative freeze.

The economic fallout extends beyond crypto. In Minnesota, businesses reliant on federal contracts and small business loans reported operational hurdles. Atek Distribution, a government contractor, faced a $2.5 million project delay, while Delta Air Lines warned of reduced efficiency due to strained air traffic control. Small business lenders like Sunrise Banks reported stalled loan processing, with 320 applications per day affected, according to a Star Tribune report.

Political gridlock shows no signs of easing. Senate Democrats demand extended healthcare subsidies to reopen the government, while Republicans resist. President Donald Trump's shifting stance on SNAP funding—ranging from threatening to withhold benefits to pledging support—added to market uncertainty, according to USA Today live updates. Judicial rulings in Massachusetts and Rhode Island forced the administration to explore legal pathways to fund food aid, but Agriculture Secretary Brooke Rollins argued contingency funds were insufficient.

Bitcoin's technical outlook remains mixed. The 200-day moving average at $109,380 was breached, raising concerns of further declines toward $100,000 in a Yahoo Finance piece. However, Bitwise and other ETF providers signaled potential approvals once the SEC resumes operations, which could drive institutional demand and liquidity. XRP, Solana, and other altcoins also face pressure, with XRP nearing a "death cross" technical pattern.

As the shutdown enters its fourth week, investors are weighing short-term volatility against long-term catalysts. While Bessent's comments and ETF inflows offer hope, the dollar's dominance and political stalemate underscore the fragility of the current environment.